Sir Peter Beck’s New Zealand-based rocket builder, Rocket Lab, is buying German-based satellite laser specialists Mynaric. Rocket Lab will pay $75 million (€68.7m) in cash and stock and there’s potential for another $75 million in an ‘earn out’ consideration.
However, key to the purchase is the statement from Rocket Lab and that its intention is to become “an end-to-end space company”. This translates into Rocket Lab emulating SpaceX and developing its own fleet of satellites.
Beck said: “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.”
The transaction is expected to close following the completion of Mynaric’s previously announced and pending StaRUG restructuring proceedings (similar to Chapter 11 bankruptcy) under German law, the completion of which would result in certain outstanding debt held by the Lenders converting into 100 per cent of the equity of Mynaric (the ‘StaRUG Restructurin’”) – subject to receipt of applicable regulatory approvals.
Laser communication has become a pain point for constellation operators, with products not readily available in high volumes at an affordable price. 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.
Rocket Lab would acquire 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 already extensive portfolio of satellite components, subsystems and software. This acquisition, once completed, will support Rocket Lab’s ability to further vertically integrate the manufacture and management of its own future high-value satellite application ambitions.
