Newsletter #2: NextNav's SPAC, ViaSat Acquires Inmarsat
New Space Activity
New Space Listings
There were no pure-play New Space listings in the last two week period, but NextNav completed its SPAC transaction successfully, listing on the NASDAQ under the ticker NN.
With their focus on Position, Navigation and Timing (PNT), we believe they are a good comparable for some of the PNT-focused New Space companies and we will continue to monitor their performance.
NextNav experienced some of the same redemption issues we have seen with other recent SPAC listings, with close to 87% of the holders choosing to redeem.
As highlighted previously, one of the results of these high redemption rates is that the trading in these stocks ends up being technical and liquidity-driven as opposed to focusing on the underlying assets' fundamentals. We will continue to monitor redemption rates in emerging New Space companies as they move through their SPAC transactions.
One of the biggest news stories in the last two weeks was out of the Legacy space sector. ViaSat announced it is buying Inmarsat on Monday November 8th, a transaction that is likely only the first move in a wave of industry consolidation.
The deal is worth $7.3B, comprised of $850M in cash, about $3.1B in Viasat equity and the assumption of $3.4B of net debt. Viasat traded down on Monday 11/08 after the announcement, and continues to trade below recent prices this week. Inmarsat is currently owned by a consortium of private equity investors, including Apax Partners and Warburg Pincus.
Spire reported Q3 2021 earnings after the markets closed on Wednesday November 10th. The company reported $9.6 million in revenue for the third quarter ended September 30, a 33 percent jump from the same period in 2020.
Share Price Movements
The top performing new space companies in our index, from a share price perspective, in the last two weeks are highlighted below, followed by the top five legacy space companies that we are tracking.
New Space Companies - Top Five Share Price Performers
Legacy Companies - Top Five Share Price Performers
As many of the newly listed New Space companies currently do not report meaningful revenue multiples (either forward or backward looking) we caveat that the revenue multiple numbers below should be considered carefully. As revenue multiple data becomes more meaningful for the New Space ecosystem it will allow for more in-depth analysis and comparison with the Legacy space ecosystem.
New Space Companies - TTM Revenue Multiples
Legacy Space Companies - TTM Revenue Multiples
New Space Companies - Forward (FY2021) Revenue Multiples
Legacy Space Companies - Forward (FY2021) Revenue Multiples
All market data from end of trading day Wednesday, 11/10/2021
Promus Ventures invests in early-stage deep tech startups solving complex problems to advance everyday lives across the world. Some of Promus Ventures’ other leading portfolio investments include Rocket Lab (Nasdaq: RKLB), Whoop, Spire (NYSE: SPIR), Mapbox, ICEYE, Bellabeat, Swift Navigation, AngelList, Behavox, Gauss Surgical, Figure Eight, Isotropic Systems, Halter, Cobalt, Safehub, and numerous others.
Recipients of this post are not to construe it as investment, legal, or tax advice, and it is not intended to provide the basis for any evaluation of an investment in any fund. Prospective investors should consult with their own legal, investment, tax, accounting, and other advisors to determine the potential benefits, burdens, and risks associated with making an investment in any fund.
Promus Ventures is a trademark of Promus Holdings, LLC. Used under license.
Copyright 2021 Promus Ventures, all rights reserved.