Voyager Space Holdings has added X.O. Markets, the parent of commercial space service venture Nanoracks, to its growing catalogue of space companies. The agreement was first announced last December.
This is Voyager’s fourth majority stake acquisition of a space company since its founding in October 2019, and it won’t be its last. Voyager CEO Dylan Taylor told TechCrunch that he anticipates the company will announce two to four more acquisitions this year. It’s an aggressive strategy, but key to understanding Voyager’s business model.
“A lot of people confuse us with a fund or private equity strategy, or some kind of a financial instrument, for lack of a better word, and we’re really none of those things,” Taylor said. “We’re an operating company.”
Voyager wants to reach the same level of capability as the space “primes,” or primary companies, in seven to 10 years. To get there, it’s pursued a majority stake in a series of space ventures to build out its portfolio of capabilities. Notably, Voyager has always never opted for 100% equity in these companies, and it operates in a relatively decentralized way. These business decisions help keep innovation flourishing amongst Voyager’s many ventures, Taylor said.
The typical strategy in private equity — to purchase two competing companies, merge them and sell them onto another financial buyer — doesn’t ultimately spur growth of the new space economy, he pointed out.
“[That strategy is] really not how you capture value in space,” he said. “You capture value in space by Capability A, marrying it with Capability B and unlocking a new Capability C that’s higher up on the food chain.”
The company also plans to go public via a traditional initial public offering sometime around the third quarter of this year. It anticipates filing the S-1 at some point this summer, Taylor said. He declined to provide further details of the recent acquisition.
Voyager’s previous major acquisitions have been with Pioneer Astronautics, an R&D company that performs, amongst other things, research into supporting life in space; advanced robotics startup Altius Space Machines; and The Launch Company, a launch support company that provides standardized hardware and equipment to launch providers.
The newest acquisition, Nanoracks, has been involved in more than 1,000 projects with the International Space Station, most importantly installing the first commercial airlock on the ISS. Last November, the company also entered into a partnership with the Abu Dhabi Investment Office to research agricultural solutions in challenging physical environments, like the desert — or space.
Perhaps the most interesting of Nanoracks’ endeavors is what it calls its Outpost program: building and operating completely commercial space stations out of the spent upper stages of launch vehicles and other space debris. Nanoracks will be launching a demonstration mission onboard a SpaceX mission next month.
The four acquisitions taken together — launch support, advanced robotics, a research company and now Nanoracks — clearly point to a future in which Voyager is primed to build and operate commercial space stations. While that future is still far off, it’s closer than one might think.
“The last 10 years of the industry was defined by getting to orbit,” Taylor said. “I think the next 10 years will be about destinations. I think it’s highly likely we’re going to have somewhere between eight-12 space stations in orbit by 2030.”