(Reuters) – Firefly Aerospace, a company specializing in space technology, has announced its intent to acquire the national security technology firm SciTec for approximately $855 million, a move that comes shortly after its listing on Nasdaq. This acquisition aims to refine Firefly’s offerings during a period of heightened investor enthusiasm for U.S. military and civilian initiatives.
The transaction is structured to include $300 million in cash and $555 million in Firefly shares, with the completion expected by year-end, according to Firefly.
In August, the Texas-based enterprise achieved a valuation of $9.84 billion after its stocks rose 55.6% on their Nasdaq debut, marking the most significant U.S. listing in 2023 for a space technology company.
Firefly’s purchase of SciTec, based in Princeton, New Jersey, is poised to enhance its capabilities in space services by incorporating SciTec’s defense software analytics into Firefly’s systems.
SciTec’s expertise, which spans missile warning, tracking, and defense, as well as intelligence and surveillance, is expected to strengthen Firefly’s current launch, lunar, and in-space service offerings.
Following the deal’s closure, SciTec will function as a division of Firefly under the leadership of its current CEO, Jim Lisowski, according to Firefly’s statement.
The growing geopolitical tensions and deteriorating international relations have highlighted the significance of space and defense contractors. This acquisition is anticipated to enhance Firefly’s standing as a space tech firm and expand its lucrative opportunities within military space operations.
Firefly’s journey has been remarkable, overcoming challenges such as bankruptcy in 2017 and the removal of its CEO last year.
In September, Firefly reported that its Alpha rocket booster was lost in a testing incident, which further complicated its operational activities. This event followed a recent investigation into the failure of its Alpha rocket, which had placed a Lockheed Martin satellite in a less than optimal orbit in late April, suggesting a failure in the mission.
(Reporting by Gursimran Kaur in Bengaluru; editing by Diane Craft and Chizu Nomiyama)
