Boeing Investing $20 Million in Branson's Virgin Galactic

By Colin Kellaher

Boeing Co. (BA) on Tuesday said plans to invest $20 million in Virgin Galactic, Richard Branson's space-tourism venture that is preparing to go public.

The Chicago aerospace giant said it will work with Virgin Galactic to broaden commercial space access and transform global travel technologies.

Virgin Galactic in July said it would go public through a deal with special-purpose acquisition company Social Capital Hedosophia Holdings Corp. (IPOA), which is planning to invest roughly $800 million in Virgin Galactic for a 49% stake.

Boeing said its investment, which it making through its HorizonX venture-capital arm, is contingent on the closing of Virgin's merger deal and will be in the combined company.

"This is the beginning of an important collaboration for the future of air and space travel, which are the natural next steps for our human spaceflight program," Mr. Branson said in a statement. "Virgin Galactic and Boeing share a vision of opening access to the world and space, to more people, in safe and environmentally responsible ways."

Boeing said it will share more information on specific projects the companies plan to pursue at a later date.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

October 08, 2019 08:12 ET (12:12 GMT)

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