Orbex Acquisition Collapses After Deal Dissolves

The UK-based launch services provider, Orbex, has recently entered insolvency proceedings following the collapse of a proposed acquisition by The Exploration Company, a European space logistics startup. The announcement marks a significant setback for Orbex, which had been working on developing a sustainable space launch capability.

Failed Acquisition and Insolvency Proceedings

Negotiations for the acquisition began in December 2025, culminating in a letter of intent signed on January 21. Hélène Huby, CEO of The Exploration Company, had characterized the potential merger as “complementary.” However, the agreement fell apart, leading Orbex to take drastic measures.

• January 20: Orbex laid off 90 employees and closed its rocket engine factory in Denmark.
• February 11: The company initiated formal insolvency proceedings by filing to appoint administrators.

As a result of these actions, the remaining 150 employees in the UK face potential redundancy. Orbex stated that the decision to enter insolvency was made after exhausting all fundraising and acquisition opportunities.

CEO’s Remarks

Phil Chambers, CEO of Orbex, expressed disappointment regarding the situation. He emphasized the company’s ambition to develop a world-class sovereign space launch capability for the UK, noting that they were close to launching their first test flights this year.

Financial Uncertainty and Future Prospects

Details about Orbex’s financial condition remain murky. The company has yet to file its 2024 financial accounts, which were due by December 31, 2025. Their plans for an inaugural flight of the Prime rocket, alongside development efforts for the larger Proxima rocket, are now in jeopardy.

In light of the administrative appointment, Orbex is seeking to secure a favorable outcome for its creditors and stakeholders. The process may include the sale of its assets or parts of the business.

As the situation unfolds, the future of Orbex and its innovative projects hangs in the balance, dependent on the successful navigation of these complex insolvency proceedings.