US-New Zealand company Rocket Lab has announced the acquisition of satellite payload supplier Geost for $275 million, taking another step to the status of a full-fledged "non-traditional prime contractor" in the US defense sector.
This deal is part of the company's large-scale strategy, which has already acquired five enterprises in the last four years, covering critical elements of the satellite production chain:
- Sinclair Interplanetary (satellite electronics),
- Advanced Solutions Inc. (navigation software and control systems),
- Planetary Systems Corp. (payload separation systems),
- SolAero Holdings (solar panels for space),
- And the acquisition is also ongoing Mynaric — a German manufacturer optical terminals for laser communication between satellites.
Buying Mynaric was a logical step after that, how Rocket Lab chose its products for a project under a $515 million contract with the US Space Agency (SDA). However, Mynaric faced difficulties in scaling production, which is where Rocket Lab wants to show its strengths, integrating key components within the company to reduce risks, cost control and reduction of development time.
Vector for full vertical integration
Rocket Lab is increasingly positioning itself as an alternative to the traditional giants of the defense industry — with the ability to design, produce, to integrate and launch satellite systems in-house. The company will continue to sell components to other manufacturers, however, the main goal is to become a full-fledged developer of turnkey defense satellite systems.
The likely next step will be the acquisition of a company in the field of satellite traction - one of the riskiest components according to SDA estimates. Rocket Lab has not directly confirmed this, but hinted at further news in this direction.
A new face in the defense sector
Against the background of projects of the "golden dome" type for anti-missile defense and the creation of massive constellations of satellites in low orbit, such as the SDA initiative, demand for fast, flexible and cost-effective satellite production is only growing.
Rocket Lab believes, that the approach of traditional contractors no longer meets the requirements of the times, and the company is ready to become one, who the US government is looking for - new, flexible and ambitious player, capable of implementing major defense programs at lower costs and at a faster pace.