Space

Details of the Collaboration between Osprey Technology Acquisition Corp and the BlackSky

On Feb 18, a renowned company providing services such as geospatial intelligence and satellite imagery known as BlackSky became public. After it entered a merge with Osprey Technology Acquisition Corp, that became the case since it entailed signing a deal to go public. Like any other special purpose acquisition company (SPACs), Osprey Technology Acquisition Corp gets funding from investors and uses the money to merge with a private company. Once the merger happens, the privately held company can now be traded publicly.

According to the CEO of BlackSky, Brian O’Toole, the acquisition will become official in July since the merger needs clear regulatory reviews. Upon its approval, BSKY will be the letters representing the company on the New York Stock Exchange list. He also added that the collaboration could see BlackSky get cash of up to $450 million, whereas its value upon going public would be approximately $1.5 billion.

The merger will see Osprey Technology Acquisition Corp become the owner of part of the BlackSky Company. Despite that, the majority ownership will go to BlackSky shareholders. The company is not the first company to go the SPAC way, but it is undoubtedly among the latest. It may have its reason for jumping the ship since such mergers have several benefits. For any private company considering to go public, such a coalition is the easiest way of achieving the same. Equally important, it is also a quick way of accessing funding.

The journey of BlackSky to join the SPAC industry started last year, according to O’Toole. Amidst all the options, Osprey Technology Acquisition Corp became the most appropriate choice, thanks to its deal’s attractiveness. ┬áIn search of a financing strategy, SPAC transaction became an option, and that’s when Osprey Technology Acquisition Corp came into the company’s picture.

The funding could see BlackSky introduce machine learning and AI capabilities while also expanding its software platform. Another chunk would go to manufacturing new satellites. Recently, its business with the U.S. government in areas such as intelligence and defence has been excellent. O’Toole believes that more investment would put the firm in a better position to engage in other areas, including transportation, energy and mining. That would mean an even brighter future for the company.

This merger comes about seven years after its emergence. That’s because BlackSky came into existence in 2014 and started its operations in Seattle, Herndon, Virginia. From the word go, the company was global, offering monitoring services through a satellite constellation. The satellites manufacture is LeoStella in collaboration with the Thales Alenia Space. It has five satellites at the moment, but the number is expected to increase by 25 in a few years to come.

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