Rocket Lab agrees to pay $16 million for portion of Virgin Orbit assets

Rocket Lab USA

said Tuesday it is finalizing an asset purchase agreement to buy certain aerospace production and manufacturing assets as part of Virgin Orbit Holdings’s

chapter 11 bankruptcy auction.

The launch and space systems company said its purchase of the Long Beach, Calif. aerospace production and manufacturing assets is subject to finalizing the purchase agreement and approval by the U.S. Bankruptcy Court.

The company said its successful bid of about $16 million includes the assumption of the lease to Virgin Orbit’s headquarters and manufacturing facility in Long Beach, along with certain production assets, machinery and equipment located there.

Peter Beck, founder and chief executive officer of Rocket Lab, said the dead would add to the company’s presence in Long Beach and provides co-located engineering, manufacturing, and test capabilities for its Neutron rocket team. The company won’t be integrating Virgin Orbit’s launch system with its existing services.

Virgin Orbit said Tuesday it will cease operations following its bankruptcy filing and the sale of its assets.

Read more from source