WASHINGTON — Ursa Major, a Colorado-based defense technology company that has expanded from building rocket engines into hypersonic missiles and solid rocket motors, plans to go public through a merger with a blank-check company in a deal valuing the combined business at about $2.3 billion.
The transaction with Bleichroeder Acquisition Corp. III is expected to provide Ursa Major with at least $350 million in committed financing to expand production of missile propulsion systems, hypersonic missiles and spacecraft propulsion technology, the companies said Aug. 25.
The deal marks another step in Ursa Major’s transition from a supplier of liquid rocket engines for commercial launch vehicles into a defense manufacturer of missiles and munitions, markets where the Pentagon is pushing suppliers to increase production and bring new sources into a strained missile industrial base.
The transaction gives Ursa Major a pre-money equity valuation of approximately $1.6 billion and a post-transaction valuation of about $2.3 billion. The companies expect the deal to close in the first quarter of 2027, subject to shareholder and regulatory approvals and other closing conditions, after which Ursa Major would trade on Nasdaq.
At least $350 million is being committed through a private investment in public equity, or PIPE, led by Inflection Point Asset Management and including existing Ursa Major investor XN and other institutional investors. About $110 million is being funded when the merger agreement is signed.
Ursa Major could receive additional cash from Bleichroeder’s trust account. The SPAC raised $345 million in its July initial public offering, although how much of that money ultimately reaches Ursa Major will depend on how many SPAC shareholders choose to redeem their shares before the combination closes.
The fresh capital is intended largely for manufacturing expansion. Ursa Major said it plans to turn its 400-acre Galeton, Colorado, solid rocket motor test site into a production campus while expanding liquid-engine manufacturing, additive manufacturing and development of complete missile systems.
“Deterrence depends on what can be built reliably, safely and at scale,” said Chris Spagnoletti, chief executive of Ursa Major.
From rocket engines to missiles
Founded in 2015 by former SpaceX and Blue Origin propulsion engineer Joe Laurienti, Ursa Major originally built its business around supplying rocket engines to launch companies, allowing customers to buy propulsion rather than develop engines in-house. Its Hadley liquid engine was initially designed for commercial and national security launch applications.
The company, which employs more than 360 people across six facilities, has moved deeper into defense as Pentagon demand for hypersonic systems and rocket motors has grown.
Hadley now powers Stratolaunch’s reusable Talon-A hypersonic test vehicles. Ursa Major said in April that Hadley had completed 10 consecutive successful flights, including missions at sustained hypersonic speeds.
Ursa Major also developed Draper, a smaller liquid rocket engine using storable propellants that is designed for tactical missile and hypersonic applications. Draper powered the Air Force Research Laboratory’s Affordable Rapid Missile Demonstrator, which has completed two flights.
That program became the foundation for HAVOC, unveiled by Ursa Major in February as a medium-range hypersonic missile.
At the same time, Ursa Major has entered the solid rocket motor market, where the Pentagon has sought additional suppliers to supplement entrenched manufacturers. The company is developing a second source for the Navy’s MK 104 dual-thrust rocket motor and in July received a $10 million award to advance its design through critical design review and static-fire testing.
Space remains part of the company’s portfolio. Ursa Major continues to develop propulsion for satellite maneuvering and in August opened a new Longmont, Colorado, facility to expand production of avionics and in-space propulsion systems.
According to the SPAC investor presentation, Ursa now describes itself principally focused on three businesses: hypersonics, solid rocket motors and space propulsion. The filing says the company’s revenue was about $18.5 million in 2024 and $45 million in 2025, with management projecting approximately $100 million for 2026. For 2027, it identifies roughly a $200 million revenue opportunity, although the company cautioned that those projections depend on assumptions about future contract awards, production schedules and government spending. Ursa Major also acknowledges that it is not yet profitable and will need considerable capital to build the manufacturing infrastructure envisioned for HAVOC and its solid rocket motor operations.
Spagnoletti said in a presentation that Ursa Major currently has capacity to produce about eight HAVOC missiles annually and is targeting production of more than 500 a year by 2030.