Rocket Lab to Acquire Space Hardware Company Planetary Systems Corporation
LONG BEACH, Calif .– (COMMERCIAL THREAD) – Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the Company”), a global leader in launch services and space systems, today announced that it has signed a definitive agreement to acquire Planetary Systems Corporation (PSC), a Maryland-based spacecraft separation systems for $ 42 million in cash and 1,720,841 common shares of the Company, plus the potential for an additional 956,023 common shares for a earn-out based on CY 2022 financial results and 2023 from PSC. The acquisition is expected to be finalized in the fourth quarter of 2021.
PSC is a leading supplier of mechanical separation systems and satellite feeders with a legacy of 100% mission success to date on over 100 missions. The acquisition will allow Rocket Lab to leverage PSC’s strong brand and quality product offering of lightweight, cost-effective and flight-proven hardware in its vertically integrated Space Systems division of Photon satellite buses and solutions. components of spacecraft. The deal also allows PSC to use Rocket Lab’s resources and manufacturing capacity to grow its already strong commercial hardware business. PSC is the latest addition to the space systems portfolio following the recent acquisitions of Advanced Solutions, Inc (ASI) in October 2021 and Sinclair Interplanetary in April 2020, and further strengthens Rocket Lab’s end-to-end space offering on the ‘entire launch and satellite spectrum. .
For more than 20 years, PSC’s separation systems used to separate satellites from rockets have enabled customers to reduce mission costs and streamline payload integration time from days to minutes. Its Canisterized Satellite Dispenser (CSD) is a reliable, cost-effective housing for small satellites that protects a spacecraft during launch before deploying them to space. Fully encapsulated, the CSD minimizes the risk of damage and eliminates the need for heavy or complicated interface structures between the satellites and the launcher. Together, PSC’s products have been integrated into the full range of current operational launchers from US launch vendors including Rocket Lab, SpaceX, United Launch Alliance, Northrop Grumman, and more. NASA Space Shuttle and International Space Station missions; and international launchers operated by Arianespace, the Indian Space Research Organization (ISRO), the Japan Aerospace Exploration Agency (JAXA) and others.
PSC’s light strips and CSDs extend Rocket Lab’s space hardware offering which includes its Maxwell satellite distributor, the in-house developed carbon fiber distributor which is the lightest CubeSat distributor in its class. By combining the expertise of Rocket Lab and PSC, Rocket Lab will continue to offer Maxwells as part of its end-to-end mission set through the ground, satellite design and construction, flight software and CNG, and the launch, as well as to expand the in-house hardware store repertoire. PSC will also continue to serve its existing customers and engage its local and national suppliers while using Rocket Lab’s expertise, resources and technology to develop and develop its products and services.
PSC’s 25-person team will continue to be led by the company’s President and CEO Mike Whalen in Md., With founder Walter Holemans also retaining his role as Chief Engineer.
“After incorporating many of PSC’s cutting-edge products into our own Electron launches, we have seen firsthand the incredible attention to detail and impeccable craftsmanship that sets them apart as industry leaders in systems. separation of launchers and spacecraft, ”said Peter Beck, Founder and CEO of Rocket Lab. “Like Rocket Lab, PSC is committed to producing the best products and services that reduce costs without compromising quality and reliability. By combining our engineering expertise and capabilities, Rocket Lab and PSC will continue to pioneer the industry with reliable, mission-critical equipment and services that are cost effective and streamline access to space. ”
“PSC started 23 years ago as a sole proprietorship in the living room of a townhouse in Washington, DC,” said Walter Holemans, founder and chief engineer of PSC. “Thanks to a super talented team and a lot of hard work, we have accomplished our mission of providing high value added technologies to our customers. Today, we are excited to join the Rocket Lab team to deliver the next evolution in space systems. ”
About Rocket Lab
Founded in 2006, Rocket Lab is an end-to-end space company with an established track record of mission success. We provide reliable launch services, spacecraft components, satellites, and other spacecraft and in-orbit management solutions that make accessing space faster, easier and more affordable. Based in Long Beach, Calif., Rocket Lab designs and manufactures the small Electron orbital launcher and Photon satellite platform and develops the 8 ton Neutron payload class launcher. Since its first orbital launch in January 2018, Rocket Lab’s Electron launcher has become the second most frequently launched US rocket each year and has placed 105 satellites into orbit for private and public sector organizations, enabling operations in the fields of national security, scientific research and space debris mitigation. , Earth observation, climate monitoring and communications. Rocket Lab’s Photon spacecraft platform was selected to support NASA’s missions to the Moon and Mars, as well as the first private trade mission to Venus. Rocket Lab has three launch pads at two launch sites, including two launch pads at a private orbital launch site located in New Zealand, one of which is currently operational, and a second launch site in Virginia, United States. -Unis, which should become operational by the end of 2021. For more information, visit www.rocketlabusa.com.
This press release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934. , as amended. These forward-looking statements, including, but not limited to, expectations regarding the timing, completion and benefits of the PSC acquisition, are based on Rocket Lab’s current expectations and beliefs regarding future developments and their effects. potentials. These forward-looking statements involve a number of risks, uncertainties (many of which are beyond Rocket Lab’s control) or other assumptions that may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. . There are many factors that could cause actual future events to differ materially from the forward-looking statements contained in this press release, including risks related to the global COVID-19 pandemic, including risks related to government restrictions and lockdowns. New Zealand and other countries in which we operate which may delay or suspend our operations; delays and interruptions in expansion efforts; our dependence on a limited number of clients; the harsh and unpredictable space environment in which our products operate, which could adversely affect our launcher and spacecraft; increased congestion due to the proliferation of constellations in low Earth orbit which could significantly increase the risk of potential collision with space debris or other spacecraft and limit or impair our launch flexibility and / or our access to our own slots orbitals; increased competition in our industry due in part to rapid technological development and falling costs; technological changes in our industry that we may not be able to keep up with or that could make our services uncompetitive; evolution of average selling prices; the inability of our satellites to perform as intended, either due to our design error during production or through no fault of our own; interruptions in the launch schedule; supply chain disruptions, product delays or failures; design and engineering flaws; launch failures; natural disasters and epidemics or pandemics; changes in government regulations, including with respect to trade and export restrictions, or in the status of our regulatory approvals or requests; or other events that require us to cancel or reschedule launches, including customer contractual rescheduling and termination rights; the risks that acquisitions will not be finalized on time or not at all or will not achieve the expected benefits and results; and other risks detailed from time to time in documents filed by Rocket Lab with the Securities and Exchange Commission under “Risk Factors” and elsewhere (including that the impact of the COVID-19 pandemic may also exacerbate the risks discussed there). There can be no assurance that future developments affecting Rocket Lab will be as we have anticipated. Except as required by law, Rocket Lab assumes no obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise.