iRocket Announces $400M SPAC Deal
New York-based reusable rocket startup, iRocket, has signed a letter of intent to merge with BPGC Acquisition Corp., a blank-check company sponsored by former Commerce Department chief Wilbur Ross, as part of an effort to take the company public. If completed, the merger will list iRocket on the Nasdaq with an expected valuation of approximately $400 million. In return, Ross will join iRocket’s board of directors to advise the company on positioning its technology to secure future national security contracts. A definitive agreement is expected to be executed in the summer of 2025 and completed before the end of the year.
iRocket's complete reusability, due to its patented engine design, offers rapid, low-cost access to space. This is crucial for fulfilling the high-frequency, high-volume requirements of LEO constellations. iRocket aims to substantially lower launch expenses while addressing customer needs, making small satellite constellations and responsive space missions more economical. This capability meets the evolving demands of defense, commercial, and scientific sectors for on-demand, tactically responsive access to space. iRocket's reusability provides a competitive advantage in the new space economy, opening markets that non-reusable or partially reusable systems cannot serve profitably.
"We are more than a rocket company," said Asad Malik, Founder and CEO of iRocket. "Our mission is to secure the future of U.S. defense and space capabilities. We believe that partnering with BPGC Management LP and Wilbur Ross will give us the strategic capital, network and governance to execute our mission at scale. They recognize that iRocket's proprietary design and technologies have the potential to transform the economics and tactical capabilities of space launch, which is essential to national security."
"iRocket represents a rare opportunity to back a company that is both visionary and execution-focused," stated The Hon. Wilbur Ross. "The team has developed breakthrough technology, and we believe iRocket is uniquely positioned to serve the U.S. defense industrial base, support allies and drive innovation across space and national security. We look forward to helping the company scale its operations, secure government contracts, and expand globally."
Anne Dwane, Co-Founder and General Partner of Village Global stated, "We supported iRocket from the beginning, and have observed Asad and his team continually innovate to significantly reduce the cost of accessing space for both civilian and defense customers."
Several private space companies went public via SPACs earlier this decade, yielding varied results. For launchers specifically, the SPAC process often led to significant challenges. Virgin Galactic ($SPCE) joined the NYSE in October 2019, but the company's market value has significantly declined since its peak in 2021. Virgin Orbit went public through a SPAC in 2021 and filed for Chapter 11 bankruptcy within two years. Astra also used a SPAC to go public in 2021 but was taken private in 2024 after its stock price fell below $1, leading to a delisting threat from Nasdaq. Rocket Lab ($RKLB) is one of the few launchers that has thrived post-SPAC, going public in 2021 and doubling its trading value since then.
iRocket’s strategy to maintain retail investor satisfaction before the planned 2027 launch of its first rocket, Shockwave, remains uncertain. The company is developing its reusable rocket, designed for rapid turnaround launches, under an $18 million CRADA agreement with the Air Force Research Lab. iRocket received a $1.5 million SBIR in 2020 and a $1.8 million TACFI contract from SSC in 2023 to develop its reusable methalox engine. However, the company has not publicly announced any additional revenue sources since then, either public or private.
Cohen & Company Capital Markets serves as iRocket’s exclusive sell-side adviser and lead capital markets adviser, while Greenberg Traurig acts as the rocket company’s legal counsel in the transaction. White & Case advises BPGC on the proposed transaction’s legal aspect.