Quantum Space, a startup with plans to build highly maneuverable spacecraft for the U.S. military, announced its intention to go public through a $1.2 billion merger with a SPAC.

In a year of massive initial public offerings (IPOs), a SPAC seems almost quaint—a vehicle that was popular in 2021, especially within the space sector and tech world. Many such deals have been disastrous for retail investors, but a few—such as Rocket Lab and Planet—have succeeded.

Notably, Quantum Space's launch is backed by Kam Ghaffarian, who previously founded Intuitive Machines—a $6.4 billion company that sends robotic missions to the moon. Now, with the U.S. Space Force expanding its needs for maneuverable spacecraft, Ghaffarian sees an opportunity for Quantum Space.

Jim Bridenstine, a former NASA administrator, leads Quantum Space. He aims to leverage his experience in public-private partnerships and his knowledge of space industry requirements to secure key contracts. Ranger, the company's spacecraft, is designed to remain in high orbits over long periods to watch rival satellites, matching and potentially exceeding competitors from Russia and China.

The SPAC deal will fund the construction of manufacturing facilities in Tulsa, Oklahoma, capable of producing one Ranger per quarter by 2028. The next step is launching the first prototype to orbit in 2027.