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Redwire Corporation (NYSE: RDW), a prominent player in space infrastructure, has announced the signing of a definitive agreement to acquire Hera Systems, Inc., a spacecraft developer specializing in national security space missions. This strategic acquisition is expected to bolster Redwire's spacecraft offerings, particularly for specialized missions in geostationary orbit (GEO).
Hera Syst by Clarence Oxford
Los Angeles CA (SPX) Aug 20, 2024
Redwire Corporation (NYSE: RDW), a prominent player in space infrastructure, has announced the signing of a definitive agreement to acquire Hera Systems, Inc., a spacecraft developer specializing in national security space missions. This strategic acquisition is expected to bolster Redwire's spacecraft offerings, particularly for specialized missions in geostationary orbit (GEO).
Hera Systems, founded in 2013 and based in San Jose, California, focuses on creating high-performance spacecraft tailored to meet the demands of national security operations in contested space environments. The company's advanced spacecraft platform features cyber-secure communications, resilient power systems, precision pointing, enhanced maneuverability, and extensive onboard computing capabilities that support mission-specific machine learning applications. In 2022, Hera Systems was contracted by Orion Space Solutions to develop three satellites for the U.S. Space Force's Tetra-5 mission, an on-orbit servicing demonstration in GEO.
Redwire has been actively expanding its national security space operations, recently securing a prime contract to develop and demonstrate a Very Low Earth Orbit (VLEO) spacecraft for DARPA's Otter program. The company has also been a key supplier of antennas for the Space Development Agency's Transport Layer program since its inception with Tranche 0 in 2020.
"Hera Systems' platform is highly complementary with Redwire's suite of national security space solutions," said Peter Cannito, Chairman and CEO of Redwire. "Similar to our focus on VLEO platforms, we see increasing opportunities to unlock and deliver new solutions in MEO, GEO and other domains to support the warfighter and address critical needs in National Security Space. This transaction fits squarely within our growth strategy by adding significant capabilities to move up the value chain in select areas of emerging hybrid architectures."
Hera Systems has demonstrated profitable growth, recording $15 million in revenue for the year ending December 31, 2023. Redwire will finance the acquisition through its available balance sheet liquidity and anticipates that Hera Systems will contribute positively to its future growth and profitability. With the acquisition expected to close in the third quarter of 2024, Redwire has adjusted its full-year 2024 revenue guidance from $300 million to $310 million.
GH Partners LLC is acting as the financial advisor, while Hogan Lovells is serving as the legal advisor to Redwire.
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