Rocket Lab USA (a global leader in launch services and space systems) announced it has entered into a non-binding term sheet with specific lenders to acquire a controlling equity position in Mynaric AG. Mynaric is a leading provider of laser optical communications terminals for air, space, and mobile applications.
The deal is expected to close after Mynaric’s previously announced and pending StaRUG restructuring proceedings under German law are completed.
The acquisition is expected to strengthen Rocket Lab’s proven capabilities further as a leading launch provider, spacecraft manufacturer, and supplier of satellite components at scale. Rocket Lab may fund this and other future acquisition opportunities with proceeds from equity offerings.
This is the importance of the deal:
1.) Laser communication has become a significant pain point for constellation operators, with products not readily available in high volumes at an affordable price. And through previous acquisitions Rocket Lab has proven its ability to take satellite subsystems and components previously only available in subscale quantities with long lead times and make them affordable and available at scale. Rocket Lab intends to do the same with Mynaric’s optical terminals to serve a growing list of customers and large constellations.
2.) With an initial purchase price expected to be about $75 million, representing a fraction of the over $300 million invested in Mynaric to-date, Rocket Lab would establish its first European foothold in Munich, Germany, with a team of over 300 talented engineers and staff, opening up incremental European growth opportunities across Rocket Lab’s products and services offerings.
3.) Rocket Lab would buy extensive production assets, Intellectual Property, product inventory, and committed backlog related to satellite-to-satellite optical connectivity solutions for next-generation constellations, augmenting Rocket Lab’s extensive portfolio of satellite components, subsystems, and software. And this acquisition would support Rocket Lab’s ability to further vertically integrate the manufacture and management of its own future high-value satellite application ambitions.
A major driver for this proposed acquisition is that Mynaric is already a subcontractor to Rocket Lab, providing CONDOR Mk3 optical communication terminals for the company’s $515 million prime contract with the Space Development Agency (SDA) to produce 18 satellites for the Tranche 2 Transport Layer-Beta. And Mynaric is also a supplier into other SDA contracts, and Mynaric and Rocket Lab share many customers spanning commercial constellation operators, prime contractors, and defense and civil government agencies. Rocket Lab intends to scale production and introduce efficiencies to Mynaric’s existing manufacturing capability to further support SDA and other opportunities, providing these customers with improved confidence and assurance that their terminals will be delivered on schedule and budget.
KEY QUOTE:
“We have been very clear about this strategic direction for several years now – Rocket Lab is pursuing every part of the space value chain. We launch our own rockets, we build satellites in constellation volumes, and now we’re closing in on the final step and most valuable part of the space economy – operating our own constellations to provide data and services from space using our newly announced Flatellite spacecraft. Mynaric has paved the way in developing laser technology. Their team and technologies will make a compelling addition to our satellite component portfolio and we look forward to making the technology available at scale for our own constellations and those of our customers.”
- Rocket Lab founder and CEO Peter Beck
