Rocket Lab Acquires Solaero Holdings for $80M

Rocket Lab Expands Capabilities with SolAero Acquisition

Rocket Lab is actively pursuing a strategy of complete vertical integration within the space industry. The launch and space systems provider recently finalized the acquisition of SolAero Holdings, a leading supplier of space solar power products and precision aerospace structures, in a transaction valued at $80 million in cash.

Strengthening Satellite Manufacturing

The purchase of SolAero, a New Mexico-based company established 24 years ago, provides Rocket Lab with an internal source for a crucial component in its satellite production process. Simultaneously, SolAero will benefit from Rocket Lab’s resources, enabling increased manufacturing capacity and scalability to serve a broader customer base.

Capturing a Larger Share of the Space Market

This acquisition directly supports Rocket Lab’s long-term objectives of expanding its market presence, as explained by Morgan Bailey, Director of Communications, to TechCrunch.

Bailey stated that even when not directly launching a spacecraft with either Electron or Neutron, Rocket Lab can still generate revenue and contribute to missions by supplying components like solar panels, star trackers, reaction wheels, and flight software.

Vertical Integration Strategy

The integration of SolAero’s technology into Rocket Lab’s Photon spacecraft line will further solidify the company’s strategy of vertical integration. This approach aims to control more aspects of the space mission lifecycle internally.

Recent Expansion Through Acquisitions

The agreement to acquire SolAero was initially announced in December 2021, following Rocket Lab’s earlier acquisition of Advanced Solutions, Inc. (ASI), a space software company based in Colorado, for $40 million. The ASI acquisition was designed to bolster Rocket Lab’s Space Systems division and its ambition to become a comprehensive “end-to-end” space solutions provider.

A Series of Strategic Additions

The SolAero merger is part of a pattern of strategic acquisitions, including Planetary Systems Corporation (December 2021), specializing in spacecraft separation systems, and Sinclair Interplanetary (April 2020), a manufacturer of satellite components.

CEO Statement on the Acquisition

Peter Beck, Rocket Lab’s CEO and founder, emphasized the complementary nature of SolAero to Rocket Lab’s business model. He stated that the acquisition will allow the company to deliver complete space mission solutions to its customers.

Beck highlighted SolAero’s impressive track record, with over 1,000 successful missions, including providing space solar power solutions for the James Webb Space Telescope and missions to Mars, such as InSight and Ingenuity.

Notable SolAero Contributions

SolAero’s technology powered the largest solar array ever deployed on the Martian surface – the Mars Insight Lander – and the Ingenuity helicopter, which achieved the first powered flight on another planet in April of last year.

Powering Critical Space Missions

The company’s products have also provided power for NASA’s Parker Solar Probe and numerous Cygnus Cargo Resupply Missions to the International Space Station. Furthermore, SolAero has supported OneWeb’s broadband constellation and has been chosen to supply Solar Power Modules for NASA’s Artemis lunar exploration plans, paving the way for future missions to Mars.

Expanding the Rocket Lab Team

With the addition of SolAero’s 425 employees, Rocket Lab’s total workforce now exceeds 1,100 individuals across its facilities in California, Virginia, Colorado, Maryland, Toronto, New Zealand, and Albuquerque. Brad Clevenger will continue to lead the SolAero team as President and CEO.

Note: This article has been updated to include additional details and a quote from Rocket Lab.