Space technology firm Firefly Aerospace Inc. is set to enhance its footprint in the defense sector through the acquisition of SciTec Inc. for $855 million, a deal which was announced on Sunday. This strategic move will involve Firefly paying $300 million in cash combined with $555 million in stock, valued at $50 per share, to SciTec’s shareholders.
The acquisition positions Firefly to engage more directly in defense-related space missions, including potential participation in the ambitious “Golden Dome” anti-missile initiative, estimated to cost around $3.6 trillion over the next two decades, according to projections from the American Enterprise Institute. Firefly possesses the necessary spaceflight capabilities, having developed its Alpha rocket designed to carry payloads up to one metric ton into low Earth orbit—a crucial asset for the booming satellite industry.
Founded in 2014, Firefly is known for offering cost-effective launch services for both commercial and defense sectors. Moving forward, the company aims to expand its capabilities with the development of a larger rocket, known as Beta, geared toward heavier payloads and more complex missions. Firefly has also secured contracts with NASA to transport cargo to the Moon through its Blue Ghost lander, becoming the first private entity to achieve a lunar landing in March.
Conversely, Princeton-based SciTec specializes in missile-warning technologies, space domain awareness tools, and sophisticated analytics systems, serving defense and intelligence clients. Earlier this year, SciTec was awarded a $259 million contract by the U.S. Space Force for the development of a missile-detection system.
Firefly Chief Executive Jason Kim highlighted the strategic importance of SciTec’s software and data processing technologies, asserting their relevance in delivering timely and accurate intelligence for military operations. He noted that such capabilities are integral to providing software-defined solutions essential for national security.
The acquisition arrives at a critical juncture as the Pentagon seeks commercial partnerships for initiatives like Golden Dome, with the White House allocating an initial budget of approximately $175 billion and aiming for operational readiness by the end of 2029.
This acquisition has already positively impacted Firefly’s stock, which has faced volatility since its public listing in early August. Despite a recent drop in share price following a pre-flight testing incident, the stock rose over 13% upon the acquisition news, though it ultimately closed up 6%, valuing shares at $29.09, still below the IPO price of $45.
Upon completion of the deal, expected by the end of the year, SciTec will function as a subsidiary under the continued leadership of CEO Jim Lisowski.
