Firefly Acquires Defense Contractor SciTec in $855 Million Agreement
Firefly Aerospace has announced its intention to acquire defense contractor SciTec for approximately $855 million. This deal, centered on an integration into the defense sector, includes $300 million in cash and $555 million in Firefly shares priced at $50 each. The acquisition is expected to finalize by the end of 2025, pending regulatory approvals.
Expansion into Defense Market
The acquisition represents a strategic move for Firefly, a Cedar Park, Texas-based company known for its efforts in launch services and lunar exploration. Following its public listing on the Nasdaq on August 7, Firefly aims to broaden its presence in the defense sector and capitalize on opportunities such as the Golden Dome program.
About SciTec
SciTec, headquartered in Princeton, New Jersey, specializes in software and data processing, mainly focusing on remote sensing, missile defense, and space domain awareness. The company also operates a development facility in Boulder, Colorado, concentrating on missile detection software. With a workforce of about 475 employees, many of whom possess security clearances, SciTec generated approximately $164 million in revenue in the 12 months leading to June 30, largely through defense and intelligence contracts.
Key Contracts and Projects
SciTec has established significant partnerships, including major contracts with the U.S. Space Force for next-generation missile warning data systems that utilize artificial intelligence. Notably, the Space Force awarded SciTec a $259 million contract in May for developing ground system software for military missile-warning satellites under the Future Operationally Resilient Ground Evolution (FORGE) program. This program aims to replace outdated ground infrastructure supporting missile warning satellites.
- *Key Contract Issued:* $259 million contract for FORGE program.
- *Previous Deals:* $272 million for missile-warning data processing applications.
Once the acquisition is complete, SciTec will operate as a subsidiary of Firefly under the leadership of SciTec’s current CEO, Jim Lisowski. He will report to Firefly’s CEO, Jason Kim, who emphasizes that this integration will significantly enhance Firefly’s capabilities in providing software-defined solutions for national security missions.
Golden Dome Program Insight
The Golden Dome program is a significant initiative aimed at creating a missile defense shield. This program, anticipated to incur costs in the hundreds of billions of dollars, has attracted considerable attention from commercial space firms. Jason Kim highlighted how Firefly’s resources could align with this ambitious project, stating that SciTec is well-positioned to contribute essential elements for the Golden Dome.
Firefly’s Future Endeavors
As Firefly expands into defense, it also seeks further innovations within its space launch operations. Recently, the company faced challenges with its Alpha launch vehicle after an explosion during ground testing on September 29. Kim reassured stakeholders of the team’s efforts to return the Alpha to flight soon, addressing past failures and regulatory hurdles the rocket has encountered.
In conclusion, the acquisition of SciTec not only enhances Firefly’s technological offerings but also positions the company for future growth within the defense landscape. This move signifies a broader trend among space technology firms diversifying into defense contracts amidst growing demand for innovative solutions in national security.
