Boeing (BOE, Washington National) will invest USD20 million into Virgin Galactic (VGX, Las Cruces), a Virgin Group unit running the commercial space flights business.
The companies announced in a press release that the funds will come from Boeing HorizonX Ventures, a unit of the American manufacturer dedicated to funding and researching new breakthrough technologies.
"Boeing's strategic investment facilitates our effort to drive the commercialization of space and broaden consumer access to safe, efficient, and environmentally responsible new forms of transportation," senior managing director of Boeing HorizonX Ventures Brian Schettler said.
The transaction is contingent on the closing of a combination of Virgin Galactic with Social Capital Hedosophia Holdings Corp., which is expected to close in the fourth quarter of 2019. Following the combination, Virgin Galactic will become a publicly-listed firm and Boeing's investment will be in return for shares in the new entity.
