UK-based rocket manufacturer Orbex said it has signed a letter of intent to sell its business to European space logistics startup The Exploration Company, marking a potential consolidation move within Europe’s emerging launch sector.
Orbex confirmed on Jan. 21 that negotiations have begun but said all details of the proposed transaction remain confidential. The company did not provide a timeline for completion or disclose financial terms.
Orbex, founded in 2015, is developing a small launch vehicle known as Prime and began work on a larger medium-lift rocket, Proxima, in December 2024. Chief executive Phil Chambers indicated that Orbex’s financial position and funding strategy played a role in the decision to pursue a buyer.
“Our Series D fundraising could have led us in many directions,” Chambers said. “We believe this opportunity plays to the strengths of both businesses, and we look forward to sharing more when the time is right.”
The Exploration Company, founded in 2021, is developing a reusable space capsule designed initially to transport cargo to the International Space Station. The company is also working on a high-thrust reusable rocket engine called Typhoon under a project financed by the French space agency CNES. It has raised a total of €225 million since its inception.
Hélène Huby, chief executive of The Exploration Company, described the two businesses as strategically aligned. “Orbex and TEC are complementary,” Huby said, adding that the company is engaging with the UK government to ensure that any combined operation supports Britain’s launcher development plans. “We will be respecting the confidentiality of this process and will share more in due course.”
The potential acquisition comes as Europe’s space sector faces increasing competition and funding pressure, prompting startups to explore partnerships and mergers to secure long-term viability and scale.
