The current in a string of area tech SPACs announced this year is Redwire, an entity created by a PE company in 2020, which has gotten a variety of smaller sized business including Adcole Area, Roccor, Made in Area, LoadPath, Oakman Aerospace, Deployable Area Systems and more– all within the in 2015 or two. Redwire announced that it will go public through a merger with special purpose acquisition company Genesis Park Acquisition Corp., and the combined business will list on the NYSE.
The deal puts Redwire’s pro forma business value at $615 million, and is anticipated to offer an extra $170 million to Redwire’s coffers post-merger, consisting of a PIPELINE valued at over $100 million. Unsurprisingly, among usings the profits that Redwire means to pursue is continued M&A activity to build out its list of service offerings in the area domain.
Redwire’s mandate isn’t particularly to go after new space business, and rather its targets share in typical competence in a particular, rather narrow piece of the severally congested space market. It’s capabilities consist of on-orbit manufacturing and maintenance; satellite manufacture, assembly and design; payload combination; sensing unit design and development; and more. The concept appears to be to construct a full-stack facilities company that can provide tip-to-tail area innovation services, special actually just of launch and ground station elements (for now).
It’s a clever method for a bourgeoning new space economy where significantly, innovation companies who wish to run in area would rather focus on their special worth proposal, and outsource the complex, however mainly settled business of really getting to, and operating in, space. Other companies are addressing the marketplace in comparable ways, with launchers bringing more of that part of the procedure in-house so their payload clients essentially just need to appear with the sensing unit or interaction gadget they want to send out to area, and the launcher supplying whatever else– including even the satellite, in the fairly future.
Redwire has proven revenue-generating power, with projected 2021 revenue of $163 million, and a lot of the business now running under its umbrella are fairly fully grown and have been operating cash flow favorable for many years. Appropriately, a SPAC as a course to public markets likely does make good sense in this particular circumstances, but the increasing frequency and volume of area companies choosing this route, is, on the whole, a pattern to watch with healthy hesitation.