Rocket Lab USA (RKLB) has announced its intent to acquire a majority stake in Mynaric AG (DE:M0YN), a German-based supplier of optical communications terminals. By integrating Mynaric’s technology, RKLB will improve its capabilities as a spacecraft manufacturer, launch provider, and supplier of critical satellite components.
RKLB is an aerospace company that provides small satellite launch services and space systems development.
Terms of the Deal
Rocket Lab’s acquisition of Mynaric is valued at about $100 million as an initial purchase price. Also, there are potential performance-based earn-outs that could raise the total deal value to $200 million.
However, the completion of this acquisition is dependent on two factors. Firstly, the deal requires regulatory clearances. And secondly, Mynaric is undergoing restructuring under German law, which involves converting certain debts into equity. This process must be completed before the deal can proceed.
Here’s How The Deal Benefits RKLB
This move will also provide access to Mynaric’s special laser systems that help satellites communicate faster and more securely. Adding this tech will improve Rocket Lab’s satellites. Further, RKLB will not need to depend on outside suppliers for critical components like optical communication terminals. They can manufacture them in-house, making them cost-effective.
The acquisition gives Rocket Lab access to over 300 engineers and Mynaric’s manufacturing hub in Munich, Germany. This expands Rocket Lab’s global reach and expertise.
Mynaric’s existing contracts and relationships with customers, especially in the aerospace and defense sectors, will open new revenue streams for Rocket Lab. Notably, Mynaric is part of a $515 million deal with the U.S. Space Development Agency, which offers solid revenue potential.
Is Rocket Lab a Buy or Sell?
Turning to Wall Street, RKLB stock has a Moderate Buy consensus rating based on eight Buys and five Holds assigned in the last three months. At $26.86, the average Rocket Lab stock price target implies 50.64% upside potential.
See more RKLB analyst ratings.
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