Satellite imagery and data company Planet Labs is going public, announcing that it will merge with a special purpose acquisition company (SPAC) and list on the New York Stock Exchange.
Planet Labs is combining with SPAC dMY Technology Group IV, which trades on the NYSE under the ticker symbol "DMYQ." The deal gives the space company a $2.8 billion U.S. valuation and is expected to close in the fourth quarter of this year, resulting in Planet listing on the NYSE under the ticker symbol "PL."
Shares of DMYQ rose 7% in pre-market trading from its previous close of $9.81 U.S. on the news.
The deal is expected to raise $434 million U.S. in total for Planet Labs. Previously, Planet Labs raised more than $380 million U.S. in capital from investors including Google, Lux Capital, Founders Fund, Space Capital and others.
Planet Labs joins a trend of space companies going public through SPAC deals, with Virgin Galactic having listed via a SPAC in 2019. Other space companies such as Rocket Lab, Spire Global, BlackSky, Redwire, Satellogic and Momentus are expected to go public this year.
Planet Labs has launched 462 satellites to date, and its current orbital fleet features 21 satellites that can capture detailed imagery of the Earth. Planet Labs says its satellites create a “scan of the whole landmass of the Earth once per day.”
The company’s imagery then feeds into a data index that Planet Labs says makes the Earth "searchable" for its more than 600 customers. Planet’s customers pay a subscription fee to access the company’s data and imagery, with 90% of those being recurring annual contracts.
Planet Labs existing revenue is split among four sectors: Civil at 24%, agriculture at 23%, defense and intelligence at 22%, and mapping at 17%. The company generated $113 million U.S. in revenue last year. Planet Labs aims to be profitable by 2025 and grow its revenue to $700 million U.S. by 2026.
