Significant consolidation is sweeping through the space industry, with 23 acquisitions announced in 2024, including 9 in Q3 alone. Space Impulse Market Analyst, Anup Gholap notes that the trend highlights the sector’s increase in M&A activity as companies aim to boost their capabilities and market positions.
M&A Activity Announced in Q3 2024
Source: Space Impulse Market Intelligence Platform, Space Impulse Market Analyst, Anup Gholap
Major Acquisitions
Sierra Space to Acquire ULA
Boeing and Lockheed Martin are reportedly in discussions to sell United Launch Alliance (ULA), their joint venture, to Sierra Space, a move that would consolidate major players in the space launch sector. Sierra Space would acquire the launch firm for an estimated $2-3 billion. This deal would mark a significant shift in the launch industry landscape.
Lockheed Martin’s Bid for Terran Orbital
Lockheed Martin announced that it has signed an agreement to acquire satellite manufacturer Terran Orbital for $450 million. This acquisition aims to strengthen Lockheed’s position in the small satellite market and potentially expand its capabilities in satellite production and integration.
Focus Areas
The Q3 acquisitions centred on several key segments:
- Launch infrastructure
- Satellite manufacturing
- Ground station infrastructure
- Data analytics and software
Companies sought to gain specialized technology and expertise in these areas to enhance their service offerings across the space value chain.
Other Notable Deals
EQT’s Ground Station Infrastructure Acquisition
Private equity firm EQT reportedly entered exclusive talks to acquire a majority stake in Eutelsat Group’s global satellite ground station business for approximately $877.7 million. This deal includes Eutelsat’s teleports and ground station infrastructure across various countries. The acquisition would allow EQT to tap into the growing demand for satellite connectivity and data services.
Redwire Space Expands with Hera Systems
Redwire Corporation announced plans to acquire Hera Systems, a spacecraft developer specializing in national security missions. This acquisition, Redwire’s eighth in four years, will enhance its capabilities in supporting specialized National Security Space missions, particularly in geostationary orbit (GEO). Hera Systems brings expertise in cyber-secure communications, resilient power systems, and onboard machine learning for spacecraft.
KBR Acquires LinQuest Corporation
KBR, Inc. announced its acquisition of LinQuest Corporation, a move aimed at enhancing KBR’s capabilities in the national security and space sectors. LinQuest specializes in advanced solutions for military and intelligence communities, including space systems technology, cyber and digital services, and C4ISR. This acquisition is expected to strengthen KBR’s position in high-growth, high-margin areas of national security.
Industry Impact
This trend toward consolidation points to an evolving space tech market. Larger companies are absorbing smaller, specialized firms to round out their capabilities and stay competitive. This environment may present challenges and opportunities for startups and smaller players. While competition from larger entities increases, there’s also potential for lucrative exits through acquisition. As the space industry continues to evolve, further consolidation seems likely. Companies must adapt to this changing landscape through strategic acquisitions or by carving out unique niches to remain independent.
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