Rocket Lab to Acquire SolAero Holdings for $80 Million in Cash30th Dec 2021
On 13th December 2021, Rocket Lab USA, Inc., a world leader in space systems and launch services, announced the acquisition of SolAero Holdings, Inc. The company announced that it had signed a definitive agreement to acquire SolAero. It is a top-tier supplier of space solar power products. SolAero Holdings also supplies precision aerospace structures for the worldwide aerospace market. The $80 million in cash acquisition is expected to finalise within the first quarter of 2022.
Why Does Rocket Lab want to acquire SolAero Holdings?
The acquisition fulfils Rocket Lab’s growth strategy of on-end integration in delivering a comprehensive space result. Rocket Lab wants a space solution that covers a comprehensive span, including launch, spacecraft manufacture, ground operations, and flight software. In hindsight, SolAero will help boost high-volume production when combined with Rocket Lab. SolAero will bring value to the company, as its space solar cells are among the best in the world. A Rocket Lab and SolAero combination is a powerful mix that will create high-performing space power automation.
The Impact of Solaero’s Acquisition by Rocket Lab
Acquiring SolAero means adding a 425-strong employee team to Rocket Lab, bringing the total employee headcount to about 1,100. The employees work in different manufacturing wings, test centres, and launch facilities. Rocket Lab spans various local and international facilities in Maryland, California, Colorado, Virginia, and Toronto. The company also has its footprints in New Zealand, and most recently, in Albuquerque, New Mexico. The SolAero Holdings’ team works under its CEO and president, Brad Clevenger, in New Mexico.