EQT buys Berlin-based SpaceX satellite launch partner Exolaunch

By Anousha Sakoui

LONDON, June 18 (Reuters) - Private equity fund EQT is acquiring Berlin-based space company Exolaunch, which helps satellite companies launch into orbit by partnering with rocket operators such as Elon Musk's SpaceX.

The deal, announced by the companies Thursday, highlights strong investor interest in the space industry and marks the Stockholm-listed fund's first private equity investment in the field. It is looking to grow the company's operations around the world and invest in developing new satellite launch and deployment technologies. 

Exolaunch was spun out of the department of space technology at the Technical University of Berlin in 2013, having been founded by associate professor Dmitriy Sternharz. 

"There has never been a better time to be in the space economy," said Robert Sproles, Chief Executive Officer of Exolaunch, in an interview. "There is such tremendous growth, it really is a confluence of technology, demand, end-product use and funding that is coming together to enable these opportunities."

The investment is being made from EQT's flagship private equity fund which invests equity checks from €300 million to €1.5 billion ($348 million to $1.74 billion). The Exolaunch acquisition was at the lower end of the range, a person with knowledge of the matter said, speaking on condition of anonymity because the terms of the transaction are not disclosed. 

"It's a fantastic moment to invest in that company both from a market perspective but also where the company is in terms of its development," Nils Ketter, partner and head of industrial technology in the EQT Private Equity advisory team, said, adding that they had been eyeing the company since last year. "It is a bit of a hidden gem of German industry." 

Exolaunch has deployed over 790 satellites across 47 missions for more than 200 commercial and government customers from North America, Europe, Asia and the Middle East. 

It has maintained a strategic relationship with SpaceX since 2020, having participated in every Falcon 9 Transporter and Bandwagon rideshare mission since the programs' inception.

The German company recently started procuring its own dedicated launches, with the first secured Falcon 9 missions from SpaceX, Exo-1 and Exo-2, scheduled for 2027 and 2028.  

($1 = 0.8629 euros)

(Reporting by Anousha Sakoui. Editing by Mark Potter)