Rocket Lab USA (Nasdaq: RKLB) has agreed to acquire Planetary Systems Corp. in a cash-and-stock transaction to further build up its space systems business and end-to-end offerings across launch and space hardware markets.
Rocket Lab said Monday it agreed to pay $42 million in cash and 1,720,841 in shares of common stock to buy PSC and expects the transaction to be finalized in the fourth quarter of 2021.
The deal also includes a potential payment of 956,023 in additional shares of common stock based on PSC’s financial performance in calendar years 2022 and 2023.
Maryland-based PSC has been providing spacecraft separation systems and satellite dispensers for defense, civil and commercial missions for more than two decades. The company’s products have been used and integrated with launch vehicles from Rocket Lab, United Launch Alliance, SpaceX, Northrop Grumman (NYSE: NOC) and other launch providers.
PSC’s Lightbands and Canisterized Satellite Dispensers will be integrated into Rocket Lab’s space hardware portfolio that includes its Maxwell satellite dispenser platform.
Peter Beck, founder and CEO of Rocket Lab, said the company has integrated PSC’s spacecraft separation systems across Electron launches and has seen the latter’s craftsmanship and attention to detail through its products.
“By combining our engineering expertise and capabilities, Rocket Lab and PSC will continue to pioneer the industry with trusted, mission-critical hardware and services that are cost-effective and streamline access to space,” added Beck.
PSC President and CEO Mike Whalen will continue to lead the company’s team of 25 employees. Walter Holemans, founder of PSC, will continue to serve as chief engineer.
The transaction came a month after Rocket Lab completed its acquisition of space software company Advanced Solutions Inc. and more than a year after it purchased Sinclair Interplanetary.
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