SaaS In Space With Spire Global: What Investors Should Know About SPAC Merger

Another space-related company is going public via a SPAC merger with Spire Global announcing a deal Monday morning.

The SPAC Deal: Space-based data and analytics company Spire Global announced a SPAC merger with NavSight Holdings Inc NSH. The deal values Spire Global at a post-money equity value of $1.6 billion.

A $245 million PIPE was led by investments from Tiger Global, BlackRock, Hedosophia and Barry Sternlicht. Qualcomm Inc QCOM is listed as an existing investor in the company’s presentation.

Current NavSight Holdings shareholders will own 14% of the company after the merger is completed.

About Spire Global: The space data company has a constellation of over 100 satellites. Spire Global said in its press release it's pioneering the space-as-a-service business model.

The company said it helps serve some of earth’s greatest challenges and processes five terabytes of data per day.

Spire Global serves over 150 customers including Aerion Supersonic, NASA, the U.S. Air Force and Chevron Corp CVX.

Related Link: Cathie Wood Could Be Launching A Space Exploration ETF

Growth Ahead: Spire Global is offering fast, scalable and reliable access to space at a fraction of the cost and time, according to its presentation. The company’s satellites take three to six months from design to launch versus 12 months for competitors.

The company lists making investments in sales and marketing, expanding to new geographies, expanding its proprietary data assets and mergers and acquisitions as its growth plans going forward. The Middle East and Latin America were specifically mentioned for geographic expansion.

Financials: Revenue for Spire Global is expected to grow and a compounded annual growth rate of 100% from fiscal 2020 to fiscal 2025.

The company’s revenue estimate for fiscal 2021 is $70 million, nearly double the $36 million reported in fiscal 2020.

The company sees annual recurring revenue hitting $1.2 billion in fiscal 2025.

Price Target: Shares of NavSight Holdings are up 5% to $11.01.