Rocket Lab purchase part of strategy
ROCKET Lab has bought Advanced Solutions, a Coloradobased maker of mission simulation systems and navigation and control solutions, for $US40 million
($NZ56.75 million) — plus a potential $US5 million on top if it reaches performance targets for this calendar year.
The acquisition is part of Rocket Lab’s strategy to diversify its revenue — now dominated by launches — into space systems, including inhouse designed satellites and spacecraft for interplanetary missions.
Advances Solutions was founded in 1995 and its offtheshelf Max software MAX has been used by more than 45 spacecraft for a cumulative 135 years in space.
The company’s customers include ‘‘leading aerospace contractors’’, Nasa, the US Air Force and various US Department of Defence organisations.
Advanced Solutions is Rocket Lab’s second major acquisition in space services, following its purchase of Canadian satellite component maker Sinclair Interplanetary for an undisclosed sum in April last year to bolster its ‘‘Photon’’ platform for placing satellites into the right orbit around the Earth, or ferrying them between planets.
Later this year, a Rocket Lab Photon will take a Nasa satellite into lunar orbit. In 2024, a Nasa rocket will take two Rocket Labdesigned and built Photons into orbit around Mars.
Chief executive Peter Beck hints that more acquisitions are likely.
‘‘We’ll continue to assess opportunities for organic and inorganic growth across the business where it makes sense.’’
Earlier, in the wake of his company’s Nasdaq debut Mr
Beck said that as well as development of his company’s much larger Neutron rocket, some of the $US750 million raised through the listing would be used for acquisitions.
‘‘We have a very strong thesis around mergers and acquisitions,’’ Mr Beck said.
The space transport industry, now crowded with dozens of startups, was ripe for consolidation, Mr Beck said.
A busy postlisting period has included the announcement that Rocket Lab has secured
$US24.35 million from the US Air Force’s new Space Force division to develop the upper stage of its Neutron rocket — part of a Congressionally approved process that also resulted in the KiwiAmerican company entering the innercircle of companies approved for toplevel security and defence missions. —