(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.
This acquisition will be financed through a mix of $300 million in cash along with $555 million allocated in Firefly’s stock, with expectations for the deal to finalize by year-end, according to Firefly.
In August, the Texas-based company achieved a valuation of $9.84 billion following a remarkable 55.6% surge in its share price on Nasdaq, reflecting continued investor enthusiasm for firms contributing to the advancement of the U.S. space and defense sectors.
Through this partnership, Firefly aims to enhance its space service offerings by incorporating SciTec’s advanced defense software analytics, as per the company’s statement.
SciTec brings essential expertise in areas such as missile warning, tracking, defense, and intelligence surveillance, which will significantly enhance Firefly’s existing capabilities in launch, lunar missions, and in-space operations.
Upon completion of the acquisition, SciTec will function as a division of Firefly, led by its current CEO, Jim Lisowski.
Increasing geopolitical tensions and shifting international relations have turned attention to space and defense contractors. This acquisition is anticipated to fortify Firefly’s stance in the space tech arena, boosting its potential in military-space endeavors.
Firefly has undergone considerable transformation since its challenging past, which included a bankruptcy in 2017 and the exit of its CEO last year.
(Reporting by Gursimran Kaur in Bengaluru; editing by Diane Craft and Chizu Nomiyama)
