Commercial launch company Firefly Aerospace has announced the purchase of defense technology contractor SciTec for $855 million. As a result, this strategic acquisition will dramatically enhance the company’s national security offerings. The agreement includes the $300 million in cash as well as $555 million worth of shares in Firefly Aerospace. It’s scheduled to close down by the end of this year. Moving forward, SciTec will continue to function as a wholly owned subsidiary, led by its CEO, Jim Lisowski.
This is all in addition to the recent $177 million contract Firefly Aerospace received from NASA. This acquisition cements its standing in the aerospace space. The firm recently received a $50 million financial commitment from Northrop Grumman. This move further underscores the rising investor confidence in its strategic direction.
Meanwhile, Firefly Aerospace saw their first day on the Nasdaq this summer, drawing substantial investor interest. Shares jumped over 30% on their first day of trading. They were riddled with volatility, tanking more than 20% when a rocket explosion took place during a ground test at their Texas facility. Through these ups and downs, the September announcement of the SciTec acquisition sent shares soaring, increasing 6% in response to that news.
CEO Jason Kim underscored the strategic rationale for this acquisition.
“These capabilities significantly enhance our ability to deliver integrated, software-defined solutions for critical national security imperatives, particularly Golden Dome.” – Jason Kim
The acquisition of SciTec aligns with Firefly Aerospace’s ongoing mission to advance national security offerings, particularly in the context of its ambitious plans for a mission to the Moon’s south pole. Firefly Aerospace is taking advantage of SciTec’s deep expertise to increase its technological edge. This partnership will allow the company to grow its reach within the defense industry.