Space infrastructure company Redwire plans to go public via a merger with the special-purpose acquisition company Genesis Park Acquisition GNPK.
With a valuation of $615 million, the transaction is set to provide $170 million cash to Redwire, based in Jacksonville, Fla., the companies said.
The deal reflects a $100 million private investment in public equity, or PIPE, at $10 a share, they said. Investors include Senvest Management and Crescent Park Management, the investment advisers based respectively in New York and East Palo Alto, Calif..
At closing, current Redwire investors will own 55% of the newly combined company.
The boards of Redwire and Genesis Park have approved the terms. The deal is set to close in the second quarter, subject to conditions including a vote of Genesis Park shareholders.
The companies expect the new shares to trade on the New York Stock Exchange.
Redwire, the space infrastructure company was established last June by AE Industrial Partners, the Boca Raton, Fla., private-equity firm.
The company is composed of several acquired businesses in the space industry, including specialists in satellite components, 3D printing, manufacturing, and robotic assembly in space.
When the deal closes, AE Industrial will continue to be a major shareholder, the companies said.
Redwire Chairman and Chief Executive Peter Cannito will continue in the posts and join the new board. The board will include representatives from Redwire, Genesis Park and AE Industrial.
At last check Genesis Park shares were 1.8% higher at $10.05.
SPACs, also known as blank-check companies, are publicly traded entities formed specifically to find operating companies and take them public. A SPAC speeds the effort to take a company public because it avoids the need to retain underwriters.