Satellite Company BlackSky Gets Backing From Peter Thiel, SPAC Merger Deal: What Investors Should Know

BlackSky, a real-time geospatial intelligence, imagery and data analytics company, is going public via the SPAC Osprey Technology Acquisition Corp SFTW.

The deal values BlackSky at an enterprise value of $1.1 billion. The expected proceeds of $450 million will fund BlackSky’s growth plan moving forward.

The PIPE for this SPAC deal included Tiger Global, Hedosophia and Mithril Capital, a firm founded by Ajay Royan and Peter Thiel.

PIPE shareholders will own 12% of the company after the merger.

Shares will trade as BKSY on the NYSE if the merger is approved. Current Osprey Technology Acquisition shareholders will own 21% of the company going forward.

About BlackSky: The satellite company uses artificial intelligence and machine learning on its satellites for Earth observation.

The company’s proprietary technology stack includes a constellation of high resolution small satellites that monitor global events and activities.

BlackSky is the 50% owner of a joint venture called LeoStella with Thales Alenia Space. The joint venture helps BlackSky with vertical integration of small satellite design and production capabilities.

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BlackSky's Growth Projections: BlackSky has five satellites in commercial operation, with plans to add nine additional satellites in 2021.

The company’s goal is to establish a constellation of 30 high resolution multi-spectral satellites in the future. The satellites would be capable of monitoring locations on Earth every 30 minutes.

The company highlighted its timeline in its presentation, with 2013 to 2020 planned as an investment period, 2021 to 2025 planned acceleration and 2025 an expansion year. 

BlackSky's Financials: BlackSky has contracts with multiple government agencies in the United States and around the world. The presentation highlighted the U.S. Army, U.S. Air Force and several Ministry of Defense agencies around the world.

The company has grown its pipeline of opportunities by over $1.1 billion in the last 12 months to a current figure of $1.7 billion.

The company is estimating revenue of $46 million in fiscal 2021. Revenue is estimated to hit triple digits at $114 million in fiscal 2022. Fiscal 2025 revenue is estimated at $546 million.

SFTW Price Target: Shares of Osprey Technology Acquisition were trading 27.4% higher to $13.95 at last check Thursday.