SatixFy and SPAC Sponsor Decrease Company Valuation

SatixFy’s 3099 processor chip, as presented on SatixFy’s website.

Satellite technology company SatixFy Communications and special purpose acquisition company Endurance Acquisition Corp. reduced the equity valuation of SatixFy to $365 million. The SPAC partners announced the change in filings to the Securities and Exchange Commission on Aug. 23. 

This figure refers to the current, pre-SPAC equity valuation of SatixFy. The company was previously valued at $500 million in the original business combination.

This adjustment also changes the valuation of the post-SPAC combined company. The pro forma equity valuation of SatixFy when the transaction is complete is estimated to approximately $653 million, assuming no redemptions, according to SatixFy’s recent F-4 SEC filing. This is a reduction from the previous post-SPAC valuation estimated at $813 million, when the SPAC deal was first announced in March. 

SatixFy noted that Endurance’s board of directors did not obtain a third-party valuation or fairness opinion to approve the business combination.

SatixFy, headquartered in Israel, is a vertically integrated fabless semiconductor chip company that offers products based on its own chipsets. The company produces chips, software, modem and digital beamforming antenna products in-house. It has agreements in place with Telesat, OneWeb, ST Engineering iDirect, and Airbus. 

SatixFy recently named David Ripstein, formerly of GreenRoad Technologies and Radcom to lead the company as CEO, succeeding industry veteran Yoel Gat, former CEO and co-chairman, who died in April. 

The wave of space companies that used SPAC mergers to go public including Rocket Lab, Spire, and BlackSky, has cooled down. Earlier this year, Tomorrow.io paid $1.5 million to its sponsor to terminate the SPAC deal and earlier this month, Breeze Holdings and Italian space logistics company D-Orbit canceled their planned merger due to a change in the financial markets.