Rocket Lab Announces Equity Offering, Intention to Acquire Laser Communications Provider Mynaric

Insider Brief

• Rocket Lab has launched a $500 million equity offering to support future growth, including a planned acquisition of German laser communications firm Mynaric, pending regulatory approvals and restructuring completion.
• The $75 million acquisition would give Rocket Lab control of Mynaric’s production assets, intellectual property, and customer contracts, expanding its European footprint and bolstering its capabilities in satellite optical communication.
• Mynaric, currently a Rocket Lab subcontractor for a $515 million U.S. Space Development Agency contract, would enable the company to scale laser communication terminals, addressing a key challenge for satellite constellations requiring high-speed data transfer.

Rocket Lab has announced a $500 million equity raise along with a proposed acquisition of Mynaric, a German manufacturer specializing in laser optical communication terminals.

The acquisition would give Rocket Lab control of Mynaric’s production assets, intellectual property, and backlog of customer contracts, according to the company. With an initial purchase price of approximately $75 million, Rocket Lab would secure a foothold in the European aerospace market, adding a team of more than 300 engineers based in Munich. The company sees this move as a way to accelerate the development and deployment of optical communication terminals, a critical component for satellite constellations that require high-speed data transfer between spacecraft.

Mynaric, which has faced financial difficulties, is currently undergoing restructuring under Germany’s StaRUG proceedings. As part of the agreement, Rocket Lab intends to complete the acquisition after the restructuring process is finalized, converting Mynaric’s outstanding debt into full equity ownership. The deal is also subject to final negotiations and additional due diligence, meaning it is not yet guaranteed to proceed.

Rocket Lab, with a market cap of $8 billion, has launched a $500 million equity offering to fund future growth, including its planned acquisition of German laser communications firm Mynaric. The company filed a prospectus supplement with the U.S. Securities and Exchange Commission, allowing it to sell shares through an at-the-market (ATM) offering program. Rocket Lab’s stock is down about 22 percent in the past 90 days with a one-year gain of 303 percent, according to NASDAQ.

A key motivation for Rocket Lab’s interest in Mynaric is the growing demand for laser communication in space, Rocket Lab noted. As satellite constellations scale, traditional radio frequency communications face bandwidth limitations. Optical terminals, which use laser beams to transfer data between satellites, offer higher speeds and greater efficiency. However, these systems have been expensive and difficult to cost-effectively mass produce. Rocket Lab believes its manufacturing expertise can help reduce costs and increase availability, much like it has done with satellite components in past acquisitions.

Rocket Lab already works with Mynaric as a subcontractor, with the German firm supplying laser communication terminals for Rocket Lab’s $515 million contract with the U.S. Space Development Agency (SDA). This contract involves the production of 18 satellites for the SDA’s Tranche 2 Transport Layer-Beta, a key part of the U.S. military’s next-generation space communications network. Mynaric also supplies optical terminals to other SDA contractors and various commercial and government customers. If the acquisition is completed, Rocket Lab intends to streamline production and improve efficiencies to ensure customers receive products on time and within budget.

“We have been very clear about this strategic direction for several years now – Rocket Lab is pursuing every part of the space value chain,” said Rocket Lab CEO Peter Beck. “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.”