Astro Digital to go public via $587 million SPAC merger
Satellite manufacturer Astro Digital will merge with Proem Acquisition Corp I in a SPAC deal valuing it at $587 million, expected to close in Q1 2027.
Astro Digital has agreed to merge with Proem Acquisition Corp I in a SPAC transaction that values the company at approximately $587 million pro forma post-money enterprise value. The deal, announced on Monday, will see the satellite manufacturer go public through a merger with the special purpose acquisition company, which trades on Nasdaq as PAAC.
Deal structure and financing details
The transaction is expected to provide up to $180 million in gross proceeds. This includes approximately $50 million from private investment in public equity (PIPE) financing. The PIPE is led by Proem Asset Management and Leon Capital Group, with Proem Asset Management and its affiliates committing $25 million. A further $130 million is expected to come from the SPAC's trust account, assuming no shareholder redemptions.
Conditions and timeline for closing
The deal is expected to close in the first quarter of 2027. Closing is subject to approval by Proem shareholders, a minimum cash condition of $30 million, effectiveness of a Form S-4 registration statement to be filed with the SEC, and other customary conditions. The boards of directors of both companies have unanimously approved the proposed combination.
Leadership and post-transaction plans
Following completion, Proem will be renamed Astro Digital Holdings Inc. and the combined company is expected to trade on Nasdaq. Astro Digital’s existing management team will continue leading the company after the transaction. Chris Biddy will remain CEO and Michael Wilson will continue as chief financial officer and executive vice president of operations. Imran Khan, founder and chief investment officer of Proem Asset Management, will join the combined company’s board at closing.
Astro Digital’s business and recent performance
Astro Digital designs, manufactures, launches, and operates mission-configurable satellites for commercial, civil, and defense customers. Since 2018, the company has delivered nearly 40 satellites spanning 16 mission types. It operates across applications including Earth observation, communications, space infrastructure, and defense, and has worked with more than 30 customers including NASA, the U.S. Department of Defense, Boeing, and Sony. The company has operations in Denver, California, and Australia.
| Year | Revenue |
|---|---|
| 2024 | $25 million |
| 2025 | $34 million |
Revenue has grown at a 42% annualized rate over the past two years. Imran Khan said the SPAC was attracted to Astro Digital’s capital efficiency, exposure to growth in satellite constellations, diversified sources of potential expansion, and existing operating performance. He highlighted potential growth from follow-on orders from existing customers, new customers, government and sovereign programs, and emerging mission categories such as orbital data centers.
The combined company is expected to trade on Nasdaq under the new name Astro Digital Holdings Inc. Following closing.
