Insider Brief
- Boeing and Lockheed Martin are in talks to sell rocket-launch firm United Launch Alliance (ULA) to Sierra Space.
- Sources say the deal could value ULA at $2 billion to $3 billion.
- Space Impulse Market Analyst Anup Gholap notes, “Significant consolidation is sweeping through the space industry, with 23 acquisitions announced in 2024, including nine just in Q3.”
Boeing and Lockheed Martin are in talks to sell United Launch Alliance (ULA) to Sierra Space, according to reports. Sources say the deal could value ULA at $2 billion to $3 billion. This sale would represent a major change in the U.S. space launch industry if completed. ULA, known for its launch services to the U.S. government, could transition from being controlled by two of the largest defense contractors to Sierra Space, a privately held company.
Discussions about ULA’s sale follow years of speculation. Boeing and Lockheed have considered selling their joint venture before but never reached an agreement. Earlier in 2023, companies like Blue Origin, Rocket Lab, and Cerberus Capital Management also expressed interest in ULA, though none secured a deal. While negotiations with Sierra Space are ongoing, sources caution that the talks may still fall through.
For Sierra Space, acquiring ULA would be a bold step forward. It would grant the company its own rockets to launch crewed spacecraft and space station components, cutting costs from relying on outside launch providers. Sierra Space’s focus has been on developing its Dream Chaser spaceplane and private space station habitat, with hopes of accelerating those efforts if the deal moves forward.
Selling ULA aligns with Boeing’s strategy under new CEO Kelly Ortberg. The deal would allow the company to focus on its core aerospace and defense businesses, and ULA’s separation could also provide the company with funds to reinvest in other areas.
This move is also part of a broader trend in the space industry. Space Impulse Market Analyst Anup Gholap notes, “Significant consolidation is sweeping through the space industry, with 23 acquisitions announced in 2024, including nine just in Q3.”
ULA was formed in 2006 as a merger between Boeing’s and Lockheed’s rocket divisions, ending competition between the companies and giving ULA control over U.S. government launches. However, with the rise of SpaceX’s reusable Falcon rockets, ULA has faced pressure to innovate. ULA responded by developing the Vulcan rocket, but scaling production has been a challenge.
This potential sale would mark a new chapter for ULA, potentially freeing it from Boeing and Lockheed’s strategic constraints, while Sierra Space would gain an edge in the competitive spaceflight market.
Image credit: ULA
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