Nettar Group, Inc. (“Satellogic” or the “Company”) and CF Acquisition Corp. V (Nasdaq: CFV) (“CFAC V”), a SPAC sponsored by Cantor Fitzgerald, have entered into a definitive merger agreement that will result in Satellogic becoming a publicly traded company.
The transaction is expected to be completed early during the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions. After closing, Satellogic will trade on the Nasdaq under ticker symbol SATL.
Using their proven technology at scale, Satellogic will be positioned to remap the Earth daily in high resolution and at an affordable price-point, fundamentally changing the way people access and use satellite data. The Company’s patented camera design captures 10 times more data from a single satellite than any other EO smallsat.
Satellogic currently has 17 commercial satellites on-orbit, including four that were launched on June 30. At 70 centimeters per pixel, the company stated that the high-resolution images of Earth produced by their satellites add up to more capacity than the next four competitors combined. Each satellite collects approximately 300,000 sq km of data per day and produces full-motion videos(FMV) o fas much aso two minutes in length.
Satellogic was founded to help solve some of the greatest challenges of our time: resource utilization and distribution. From tradeoffs between food, energy and water supplies, to monitoring the impacts of natural disasters, global health and humanitarian crises in the midst of a looming climate emergency; access to a continually refreshed source of global, high-quality data is critical to confronting some of the world’s most crucial issues.
Satellogic designs and manufactures every core component that goes into creating and manufacturing their satellites. This vertical integration provides a significant cost advantage, enabling the firm to produce and launch satellites for less than one-tenth the cost of their competitors, which buy components and use third-party assemblers.These capabilities also result in shorter R&D cycles as well as the ability to efficiently scale, all the while maintaining overall quality. By comparison, Satellogic is achieving more than 60 times better unit economics than the firm’s closest peers in the NewSpace sector, and more than 100 times better unit economics than legacy competitors.
Satellogic recently signed a multiple-launch agreement with SpaceX to deploy the full constellation of 300+ satellites, which is expected to completed by 2025. Once fully deployed, Satellogic will be the only company capable of remapping the world at resolutions as high as 30 centimeters and at the frequency required to address virtually all commercial applications.
On July 5, 2021, Satellogic entered into a definitive merger agreement with CFAC V. The transaction reflects an implied pro forma enterprise value of $850 million for Satellogic, representing a multiple of approximately 1.1x projected revenue of approximately $800 million by 2025.
The transaction is expected to result in cash on the balance sheet of up to approximately $274 million, after transaction expenses and debt repayment, through the contribution of up to $250 million of cash held in CFAC V’s trust account (assuming no redemptions by CFAC V’s public stockholders), and a concurrent PIPE offering of $100 million led by SoftBank’s SBLA Advisers Corp. and Cantor Fitzgerald, among other top-tier institutional investors.
The transaction, which has been unanimously approved by the Boards of Directors of Satellogic and CFAC V, is subject to approval by CFAC V’s stockholders and other customary closing conditions.
Emiliano Kargieman, CEO & Co-Founder of Satellogic, said, “Since our founding, Satellogic has been committed to our mission of democratizing access to geospatial data to help solve the world’s most pressing problems. Today’s transaction is a significant milestone and brings us one step closer to fulfilling that goal. The merger will allow us to continue building out our constellation of satellites and maintain our position as a global leader in sub-meter imagery. Satellogic is poised to be the only company capable of remapping the world daily at the sub-meter resolution necessary to address commercial applications affordably. We are grateful to our talented and ambitious team who have developed best-in-class technology, a strong track record of delivering satellites to orbit, and the ability to scale at near-zero marginal cost.”
Howard W. Lutnick, Chairman & CEO of CFAC V and Cantor Fitzgerald said, “Satellogic is uniquely positioned to dominate the Earth Observation industry. Its technology, data, and analytics have vast use cases across countless industries. Imagine insurance companies being able to document disaster damage in real-time detail remotely. Or an app providing direct daily satellite data to a farmer about the best time to harvest crops. Or bringing live documentation of deforestation or rising sea levels to policymakers to drive the discussion around climate change. The possibilities are limitless. We are excited to partner with Emiliano and the rest of the Satellogic team as they endeavor to build and launch 300+ satellites in the constellation and unlock the significant opportunity for commercial applications to enable smarter global decision-making.”
