Firefly said on Oct. 5 that it was going to acquire defense analytics firm SciTec for $855 million. This would allow the company to branch out into defense and become a player in the national security market. Firefly will pay around $300 million in cash and $555 million in new shares. The deal is expected to close by the end of 2025.
Princeton-based SciTec sells missile-warning and tracking systems, space domain awareness tools, and analytics to defense and intelligence customers. SciTec’s core capabilities, which encompass missile warning, tracking and defense, intelligence, surveillance, among other elements, will bolster Firefly’s existing launch, lunar, and in-space services.
Earlier this year, Space Force awarded SciTec a $259 million contract to develop a ground system for missile-detection satellites. The company reported annual revenue of $164 million as of the end of June.
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Firefly had an IPO earlier this year, which valued the company at $10 billion. There was also a significant investment from Northrop Grumman, one of the world’s largest weapons manufacturers and military technology providers. Northrop Grumman had invested $50 million into space startup Firefly Aerospace to aid the production of their jointly developed rocket.
According to TechCrunch, this deal is a part of Firefly’s efforts to reposition itself as a vertically integrated defense contractor from being a launch-and-spacecraft manufacturer.
Firefly used to have a tumultuous past, with a bankruptcy last year, and the CEO’s ouster last year. In September, Firefly said its Alpha rocket booster was destroyed in a testing mishap. This happened weeks after it closed an investigation into the failure of its Alpha rocket, which put a satellite owned by Lockheed Martin in a shallow orbit in late April, implying a mission failure.
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“The acquisition of SciTec enhances our ability to support a growing number of defense missions and provides us with a significant operational advantage,” said Jason Kim, CEO of Firefly Aerospace. He added that SciTec’s “mission-proven software and big data processing capabilities provide warfighters with rapid, accurate information,” and bolster Firefly’s national security portfolio.
“We believe Firefly is the best home for our business and people,” said Jim Lisowski, CEO of SciTec. “In addition to the strong strategic fit, our cultures are similar. Both teams are empowered, rapid innovators who are passionate about our critical missions and willing to take on near impossible tasks to ensure we protect our country from future threats. We share a unique focus on providing differentiated, leading-edge solutions to our customers.”
Once the deal is finalized, SciTec will be operated as a Firefly subsidiary under its current business model led by Lisowski, who will report to Kim.