Firefly Aerospace is acquiring SciTec for 855 million dollars.

Firefly Aerospace Acquires SciTec for $855 Million

HANDE BERKTAN

Austin, Texas-based Firefly Aerospace, an American private aerospace company developing vehicles for commercial launches into orbit, is making a significant move in the defense analytics sector. The company is acquiring SciTec for approximately $855 million in cash and stock.

As part of this agreement, $300 million in cash and $555 million worth of new stock are planned to be paid. The deal is expected to be completed by the end of 2025. Firefly announced that with this acquisition, it aims to become a significant player in the national security market.

The Role and Importance of SciTec

New Jersey-based SciTec provides missile warning and tracking systems, space situational awareness tools, and analytical products in the defense and intelligence fields. Earlier this year, Space Force awarded SciTec a $259 million contract to develop a ground system for missile detection satellites. The company reported an annual revenue of $164 million as of the end of June.

Firefly's Strategic Goals

Incorporating SciTec presents a significant opportunity, especially in light of the increasing need for commercial partnerships under the Pentagon's Iron Dome missile defense program. Following the completion of the agreement, SciTec will continue to be managed by its current CEO, Jim Lisowski, as a subsidiary of Firefly.

This acquisition is noteworthy as it comes just two months after Firefly’s IPO, which was accomplished with an estimated valuation of about $10 billion. The deal is part of Firefly's efforts to reposition itself from being solely a launch and spacecraft manufacturer to a vertically integrated defense contractor.