Astro Digital, a designer and operator of mission-configurable satellites, has agreed to combine with special purpose acquisition company Proem Acquisition Corp I. The deal will take Astro Digital public and create Astro Digital Holdings, Inc., expected to trade on Nasdaq. The transaction values the company at approximately US$587 million in pro forma post-money enterprise value and is anticipated to close in the first quarter of 2027.
Transaction Terms
The business combination will be financed with up to US$180 million in gross proceeds. This includes up to US$130 million of cash held in Proem's trust account, assuming no redemptions, and a US$50 million PIPE co-led by Proem Asset Management and Leon Capital Group. Proem Asset Management and its affiliates have committed US$25 million to the PIPE.
Closing Conditions
The boards of both companies have unanimously approved the agreement, and completion is expected in the first quarter of 2027. Closing remains subject to Proem shareholder approval, a minimum cash condition of US$30 million, and effectiveness of a Form S-4 registration statement with the SEC. Following the transaction, Proem will be renamed Astro Digital Holdings, Inc. and is expected to continue trading on Nasdaq.
Operational Track Record
Astro Digital designs, manufactures, and operates satellite systems for earth observation, communications, space infrastructure, and defense applications. Since 2018, it has delivered nearly 40 satellites across 16 distinct mission types and served more than 30 customers, including NASA, the Department of Defense, Boeing, and Sony. Its platforms have supported industry firsts such as Starcloud-1, which carried the first NVIDIA H100 GPU into orbit and ran large language model training and inference on orbit.
Financial Performance
Astro Digital grew revenue at a 42% two-year compound annual growth rate while generating positive adjusted EBITDA, a combination the company describes as rare among public space peers. Its backlog doubled last year, with demand coming from existing customer follow-ons, new customer wins, and government and sovereign programs. The company also points to new mission categories such as orbital data centers as a source of future growth.
Leadership and Governance
Astro Digital's existing management team, led by Co-Founder and Chief Executive Officer Chris Biddy and Chief Financial Officer Michael Wilson, will continue to lead the combined company. Imran Khan, Chairman and Chief Executive Officer of Proem, will join the board of directors at closing. Current Astro Digital directors Adrian Steckel, former CEO of OneWeb, and Dr. Derek Tournear, former director of the Space Development Agency, will also serve on the board.
Strategic Rationale
Khan, founder and Chief Investment Officer of Proem Asset Management and former Chief Strategy Officer of Snap, said the business is attractive for its capital efficiency and direct leverage to space growth. He noted that Astro Digital has built satellites for 11 years without the cash burn that defines much of the sector. The transaction is expected to support increased sales capacity, production expansion, and entry into new verticals.
The announcement positions Astro Digital to scale its satellite manufacturing and mission support services at a time of expanding constellation demand. With positive adjusted EBITDA, a growing backlog, and a US$50 million PIPE commitment, the company enters the public market with a differentiated financial profile. Completion in early 2027 would mark another milestone in the commercial space sector's maturation.