Rocket Lab has announced its intent to acquire laser communications provider Mynaric to expand its portfolio of satellite components, software and subsystems and improve its ability to vertically integrate the production and management of its future satellite application goals.
The Long Beach, California-based space company said Tuesday the nonbinding term sheet it signed with certain lenders to acquire a controlling ownership stake in Germany-based Mynaric is subject to the completion of the latter’s previously announced StaRUG restructuring plan under German law and receipt of certain government clearances.
“We have been very clear about this strategic direction for several years now – Rocket Lab is pursuing every part of the space value chain. We launch our own rockets, we build satellites in constellation volumes, and now we’re closing in on the final step and most valuable part of the space economy – operating our own constellations to provide data and services from space using our newly announced Flatellite spacecraft,” said Peter Beck, founder and CEO of Rocket Lab.
“Mynaric has paved the way in developing laser technology. Their team and technologies will make a compelling addition to our satellite component portfolio and we look forward to making the technology available at scale for our own constellations and those of our customers,” Beck added.
What Does Mynaric Do?
Mynaric provides laser optical communications terminals for space, air and mobile applications and employs over 300 engineers and personnel.
The Munich-headquartered company serves as a subcontractor to Rocket Lab, supplying CONDOR Mk3 optical communication terminals in support of the latter’s $515 million prime contract with the Space Development Agency, or SDA, to build 18 satellites for the Tranche 2 Transport Layer-Beta.
How Will Rocket Lab Benefit From the Potential Deal?
If the deal goes through, Rocket Lab will gain access to Mynaric’s intellectual property, production assets, product inventory and backlog related to satellite-to-satellite optical connectivity platforms for next-generation constellations.
Mynaric supports other SDA contracts and shares many customers with Rocket Lab, including prime contractors, defense and civil government agencies and commercial constellation operators.
The potential deal could also provide incremental growth opportunities for Rocket Lab in Europe, particularly for its products and service offerings.
Potential Acquisition
Subject to the completion of restructuring proceedings and entry into a definitive agreement, Rocket Lab would acquire 100 percent of the outstanding equity interests of Mynaric and pay the initial purchase price of $75 million with the potential for additional earnout consideration of up to $75 million payable in either cash or shares of Rocket Lab common stock.
According to Rocket Lab, any additional cash investment by the lenders or their affiliates in Mynaric following the completion of the restructuring plan and before the potential deal’s closing will result in changes in the initial closing purchase price and potential earnout consideration.
