Satellite Data Firm BlackSky Going Public in Merger With Osprey SPAC

Crystal Tse
·2 min read

(Bloomberg) -- BlackSky Holdings Inc., a satellite imagery and data company, is going public through a reverse merger with blank-check company Osprey Technology Acquisition Corp.

Herndon, Virginia-based BlackSky and the special purpose acquisition company, or SPAC, will have a valuation of almost $1.5 billion when combined, according to a statement Thursday, confirming an earlier Bloomberg report.

A $180 million equity placement was raised from investors including Tiger Global Management, billionaire Peter Thiel’s Mithril Capital, Chamath Palihapitiya’s SPAC partner Hedosophia and Senator Investment Group to support the deal. The transaction is expected to close in July.

BlackSky, which operates its own satellites, works with businesses as well as government agencies in the U.S., its website shows.

“Our primary customers now are government customers, they contribute about 90% of our revenue today,” BlackSky Chief Executive Officer Brian O’Toole said in an interview.

It reported $22 million in revenue in 2020, according to an investor presentation. The company estimated that revenue will reach $46 million this year and $546 million by 2025.

“Most of our customers are looking for a subscription to use our monitoring services, so this is a recurring revenue model,” O’Toole said.

Its technology allows users in the military and industries such as energy and construction to collect so-called geospatial intelligence. It gathers this by monitoring locations at frequent intervals through images and data, according to its website.

“We were looking for a high-growth, disruptive technology company and I think we’ve found that here,” said David DiDomenico, chief executive officer of Osprey Technology. He is also a partner at activist investment firm Jana Partners.

BlackSky is expected to be listed on the New York Stock Exchange under the new symbol BKSY. Credit Suisse Group AG and PJT Partners advised BlackSky while Moelis & Co. and Union Square Advisors advised Osprey.

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