Balloon Surveillance Startup World View Nears Merger With Leo SPAC

World View, which focuses on remote sensing and stratospheric surveillance, has agreed to go public through a merger with a blank-check firm, according to people with knowledge of the matter.

(Bloomberg) — World View, which focuses on remote sensing and stratospheric surveillance, has agreed to go public through a merger with a blank-check firm, according to people with knowledge of the matter.

The deal with Leo Holdings Corp. II is set to value the combined entity at about $350 million, which includes a potential $75 million private investment in public equity, or PIPE, said the people, who asked not to be identified discussing confidential information. A transaction could be announced as soon as Thursday, they said.

Representatives for World View and the Leo special purpose acquisition company declined to comment.

Tucson, Arizona-based World View, led by CEO Ryan Hartman, said in November it would partner with Sierra Nevada Corp. to operate balloon platforms for intelligence, surveillance and reconnaissance.

Earlier that month, the company said it was teaming up with Scepter Inc. to gather data on methane emissions and uncover potential leaks from oil and gas production in the Permian Basin of Texas. An initial balloon was set to cover ExxonMobil operations while a second is set to cover oil fields operated by Chevron, Occidental, Pioneer and others.

In addition to its remote-sensing business, World View has begun selling six-to-eight hour journeys at $50,000 a seat through its space tourism operation, according to its website. It has raised funding from Accel, Canaan and Norwest Venture Partners, among other investors.

The Leo SPAC, led by Lion Capital executives including Ed Forst, Lyndon Lea and Robert Darwent, raised $375 million in a January 2021 initial public offering. Another Leo SPAC took Local Bounti Corp. public in 2021.

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