Rocket Lab has finalized a significant acquisition, purchasing Geost for $275 million. Geost specializes in electro-optical and infrared systems, with a focus on applications such as missile warning, intelligence gathering, and space domain awareness. This acquisition is poised to enhance Rocket Lab’s production capabilities, allowing the company to manufacture these advanced technologies at scale. Additionally, the deal includes provisions for up to $50 million in potential earnouts, dependent on Geost’s future revenue performance.
Peter Beck, the founder and CEO of Rocket Lab, highlighted the strategic importance of this acquisition, stating that the ability to swiftly build and deploy complete satellite systems is pivotal to the future of U.S. defense strategies. He emphasized that this move accelerates the delivery of critical payloads crucial for supporting national security initiatives.
Included in the acquisition are Geost’s product lines, manufacturing facilities, laboratories, and intellectual property. The company will maintain its operations in Arizona and Virginia, further expanding Rocket Lab’s presence in these vital regions.
Bill Gattle, CEO of Lightridge Solutions, expressed enthusiasm about the merger, noting that becoming part of Rocket Lab empowers Geost to advance its sensing technologies more rapidly. He stated that the collaboration will enhance production scaling, hasten delivery timelines, and fortify the essential space capabilities that are crucial for national defense.
The acquisition will enable Rocket Lab to play a more significant role in key defense initiatives, such as the Golden Dome missile defense system project and the Space Development Agency’s Proliferated Warfighter Space Architecture.
The Golden Dome initiative, pushed by former U.S. President Donald Trump, seeks to establish a robust missile defense system akin to Israel’s Iron Dome, with an initial funding of $25 billion allocated for its development. Recently, the U.S. Missile Defense Agency advanced this concept by releasing a pre-solicitation notice for the Scalable Homeland Innovative Enterprise Layered Defense program. Investment for the Golden Dome project is projected to hit $151 billion over a decade, incorporating both a base period and optional phases for future procurement.
