Firefly Aerospace has finalized its $855 million acquisition of national security technology company SciTec, combining cash and stock as payment to SciTec’s owners. The deal, first announced in October, is part of Firefly’s efforts to expand its space and defense capabilities, including launch, ground and in-orbit mission services, for national security missions, according to a press release published Wednesday.
What Are the Terms of the Transaction?
The purchase was financed through approximately $300 million in cash and about $555 million in Firefly common stock, issued at $50 per share. Goldman Sachs & Co. served as Firefly’s exclusive financial adviser, with Kirkland & Ellis providing legal counsel. Baird and Cooley served as exclusive financial adviser and legal counsel, respectively, to SciTec.
What Does SciTec Add to Firefly’s Capabilities?
The acquisition gives Firefly access to SciTec’s defense software, artificial intelligence and big data processing systems used for missile warning and defense; intelligence, surveillance and reconnaissance; space domain awareness; and autonomous command and control.
The company also gains more than 475 employees who specialize in multi-phenomenology systems, software development and technical execution for classified missions and adds substantial physical assets and classified infrastructure. Firefly will integrate six new facilities strategically located near key space and defense customers, including data centers, modeling and simulation labs, and dedicated mission operations centers.
SciTec reported about $164 million in revenue over the 12-month period ending June 30, driven by contracts with defense, intelligence and commercial clients.
Firefly said these capabilities will enhance its ability to deliver hardware and software-defined tools for national security missions, including the U.S. Space Force’s Golden Dome initiative.
How Does the Deal Strengthen Firefly’s National Security Role?
“SciTec brings more than four decades of experience supporting high-stakes national security missions with industry-leading software applications and big data processing capabilities that are highly complementary of Firefly’s launch, lunar, and in-space vehicles,” said Firefly CEO Jason Kim. “Together, Firefly and SciTec bring the talent and tech to support the most critical national security programs and deliver the future of edge processing for dynamic space operations.”
SciTec CEO Jim Lisowski, who continues to lead SciTec as a Firefly subsidiary, stated that the combined company will integrate its hardware and software capabilities to deliver “new industry-leading categories for space and defense customers.”
Lisowski reports to the Firefly Aerospace CEO.
