(Reuters) -Space tech firm Firefly Aerospace will acquire national security technology company SciTec for about $855 million.
The deal, which will be funded through a combination of $300 million in cash and $555 million in Firefly shares, is set to close by the end of the year, Firefly said.
In August, Texas-based firm Firefly secured a valuation of $9.84 billion after its shares surged 55.6% in their Nasdaq debut, as investors continue to pour capital into companies aiding expansion of the U.S. space and defense program..
Firefly’s acquisition of Princeton, New Jersey headquartered SciTec will enhance its space services by integrating SciTec’s defense software analytics into its systems, the company said.
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.
Once the deal closes, SciTec will be operated as a Firefly unit under Jim Lisowski, its current CEO.
Rising geopolitical tensions and deteriorating international relations have put a spotlight on space and defense contractors. The deal would help Firefly strengthen its position as a space tech firm boosting its lucrative military-space prospects.
Firefly has come a long way from a tumultuous past, including a bankruptcy in 2017 and a CEO ouster last year.
(Reporting by Gursimran Kaur in Bengaluru; editing by Diane Craft and Chizu Nomiyama )
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