Skyrora Eyes Orbex Assets for Acquisition
Deal Would Include the Sutherland Spaceport
Skyrora has expressed interest in acquiring Orbex assets, a move the company says would protect U.K. space capabilities.
“Disappointing doesn’t come close to describing how we feel about this moment.”
Phil Chambers, Orbex
After a recent board meeting, Skyrora confirmed it intends to explore the purchase of select Orbex assets, including the Sutherland Spaceport, following the announcement that the company has appointed administrators after fundraising, merger and acquisition opportunities all concluded unsuccessfully.
Skyrora is exploring an asset acquisition which would see the established operator invest up to £10 million (≈$13.6 million), subject to discussions with the appointed administrators and completion of the necessary due diligence and legal processes.
Skyrora believes that securing select assets is vital to preserving UK space capability, protecting national critical infrastructure, and ensuring that technology and IP developed in the UK remains under UK ownership.
While Orbex has filed a notice of intention to appoint Administrators, the company will continue trading while all options for the future of the company are explored. Those options include potential sale of all or parts of its business or assets. The notice provides short-term protection and allows the business time to secure as positive an outcome as possible for its creditors, employees and wider stakeholders.
The funding required for Orbex to remain a viable business was sought from a variety of public and private investors during its Series D funding round, which ultimately failed. Several merger and acquisition opportunities have also been explored, with none resulting in a favorable outcome.
“Disappointing doesn’t come close to describing how we feel about this moment. We have been successfully developing a sustainable, world-class sovereign space launch capability for the UK and were on the cusp of our first test flights later this year,” said Phil Chambers, CEO of Orbex. “It is no secret that designing and building space rockets to enable a launch service is a capital-intensive, highly advanced process with a long development cycle that creates a ‘scale-up’ funding gap. Institutional support is crucial to bridge this gap and we have worked tirelessly to try to find both funding or rescue solutions.
“What is most disappointing is that we have brought hundreds of skilled jobs to Scotland; we have been at the vanguard of the UK’s space ambitions; we have led the way in driving good news about the UK’s space sector,” Chambers said. “Yet all of this progress now risks being undone – and it is real people who will feel the consequences.”
The first test launches of Orbex’s microlauncher Prime were due to take place later this year. Orbex already has commercial launch commitments from several satellite customers for Prime, which is one of the most advanced, low-carbon microlaunchers in the world.
An acquisition by Skyrora safeguards the product of the taxpayer funds historically injected into Orbex, the company said.