Californian space launch company Rocket Lab has entered into a non-binding term sheet with select lenders to acquire a controlling equity stake in Mynaric AG, a German manufacturer specializing in laser communication technology.
The agreement, pending approval, would allow Rocket Lab to strengthen its position as a leading launch provider, spacecraft manufacturer, and satellite component supplier. Additionally, the transaction would establish Rocket Lab’s first European base in Munich, Germany, integrating a skilled team of over 300 engineers and unlocking new market opportunities across the region.
“This acquisition aligns perfectly with our long-term vision. Mynaric’s laser communication technology will play a key role in advancing our capabilities, helping us scale solutions for both commercial and government customers,” said Rocket Lab Founder and CEO Sir Peter Beck.
Strategic Acquisition for Satellite and Space Operations
Rocket Lab’s interest in acquiring Mynaric stems from their established partnership, with Mynaric supplying optical communication terminals for Rocket Lab’s $515 million contract with the Space Development Agency (SDA). Additionally, Mynaric’s involvement in other SDA contracts and its shared customer base across the commercial, defense, and government sectors aligns with Rocket Lab’s strategic expansion objectives.
Rocket Lab also sees an opportunity to address the growing challenges faced by constellation operators in securing high-volume, cost-effective laser communication solutions. Leveraging its expertise in transforming satellite subsystems and components from limited availability and long lead times into scalable, affordable solutions, Rocket Lab plans to apply this approach to Mynaric’s optical terminals.
If completed, the acquisition would provide Rocket Lab with control over Mynaric’s production facilities, intellectual property, inventory, and backlog related to satellite-to-satellite optical communication solutions. This would further enhance Rocket Lab’s satellite technology portfolio and support its broader strategy of vertically integrating manufacturing and operations for advanced satellite applications.
“We have been very clear about this strategic direction for several years now – Rocket Lab is pursuing every part of the space value chain. We launch our own rockets, 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,” said Beck.
Acquisition Terms
The non-binding term sheet with the Lenders outlines Rocket Lab’s proposed acquisition of Mynaric, contingent on completing the StaRUG Restructuring and canceling all outstanding equity interests as per Mynaric’s restructuring plan. The term sheet also includes an exclusive negotiating period between Rocket Lab and the Lenders, subject to due diligence and the negotiation of a definitive agreement, which will require regulatory approvals. Rocket Lab emphasized that the acquisition is not guaranteed.
If finalized, Rocket Lab would acquire 100% of Mynaric’s equity for $75 million, payable in cash or Rocket Lab stock, at Rocket Lab’s discretion. An additional earn-out of up to $75 million, based on Mynaric’s future revenue, may also be paid in cash or stock. If the Lenders or their affiliates invest more capital in Mynaric after the restructuring but before the acquisition, the purchase price will increase, and the earn-out amount will be reduced accordingly.
Rocket Lab’s Space and Aerospace Efforts
Since its inception, Rocket Lab has established a strong reputation for delivering reliable commercial launches, successfully deploying over 100 satellites. In 2022, the company launched NASA’s CAPSTONE satellite toward lunar orbit using its Electron rocket. This mission represented a significant advancement in the Artemis program, as CAPSTONE became the first spacecraft to follow the planned Near Rectilinear Halo Orbit (NRHO) trajectory for NASA’s Gateway lunar outpost.
In a recent development, Rocket Lab has partnered with Kratos Defense & Security Solutions in a $1.45 billion, Pentagon-backed hypersonic missile testing program. The MACH-TB 2.0 initiative, which is one of the largest investments in U.S. hypersonic infrastructure, aims to accelerate the development of hypersonic technologies by expanding flight test capacity and mitigating risks associated with transitioning new capabilities into operational use.
Who won the 2024 3D Printing Industry Awards?
Subscribe to the 3D Printing Industry newsletter to keep up with the latest 3D printing news.
You can also follow us on LinkedIn, and subscribe to the 3D Printing Industry Youtube channel to access more exclusive content.
Featured image shows Rocket Lab’s satellite. Image via: Rocket Lab
