Firefly Aerospace, a company specializing in launch vehicles and lunar landers, has announced its intention to acquire defense contractor SciTec in a transaction valued at approximately $855 million. The move signals a significant expansion for Firefly into the national security sector, aiming to combine its space hardware with SciTec's advanced software and data processing capabilities.
Key Takeaways
- Firefly Aerospace will acquire SciTec for approximately $855 million, comprising $300 million in cash and $555 million in Firefly shares.
- The acquisition is designed to enhance Firefly's position in the defense market, particularly for projects like the Golden Dome missile defense program.
- SciTec is a specialist in missile defense software and data systems, holding major contracts with the U.S. Space Force.
- The deal follows Firefly's public listing on the Nasdaq in August and comes as the company works to return its Alpha rocket to flight status after a recent testing failure.
Details of the Acquisition Agreement
The acquisition agreement was announced on October 5, outlining a plan for Firefly Aerospace to purchase SciTec. The total value of the deal is approximately $855 million. This figure is composed of a $300 million cash payment and an additional $555 million in Firefly shares issued to SciTec's owners.
According to the terms, the shares will be valued at $50 per share. The transaction is expected to be finalized by the end of 2025, pending customary regulatory approvals and closing conditions. Firefly Aerospace, based in Cedar Park, Texas, went public on the Nasdaq stock exchange on August 7.
Strategic Rationale for the Merger
This acquisition represents a strategic effort by Firefly to diversify its business and secure a stronger foothold in the lucrative U.S. defense and intelligence markets. By integrating SciTec's expertise, Firefly aims to offer end-to-end solutions that include launch, in-space transport, and sophisticated data analysis for national security missions.
Introducing SciTec's Defense Capabilities
SciTec is a New Jersey-based contractor with a strong focus on software development and data processing for the defense sector. The company specializes in several critical areas, including remote sensing, missile defense, and space domain awareness. It also develops autonomous command and control systems.
The company employs around 475 people, a majority of whom hold active security clearances, highlighting its deep integration with sensitive government projects. For the 12-month period ending June 30, 2025, SciTec reported revenues of approximately $164 million, primarily from defense and intelligence contracts.
Major Contracts with the U.S. Space Force
SciTec has established itself as a key partner for the U.S. Space Force, particularly in modernizing missile warning systems. The company is a prime contractor for the Future Operationally Resilient Ground Evolution (FORGE) program, which is developing a new government-owned ground system for military missile-warning satellites.
SciTec's FORGE Program Contracts
- $259 Million: Awarded in May for the development of ground system software for command and control.
- $272 Million: A previous contract for missile-warning data processing applications within the same program.
These contracts task SciTec with creating advanced software that leverages artificial intelligence and machine learning to process data from next-generation satellites, replacing aging ground infrastructure.
Combining Hardware and Software for National Security
Once the acquisition is complete, SciTec will operate as a subsidiary of Firefly. Jim Lisowski, the current CEO of SciTec, will continue to lead the division and will report directly to Firefly CEO Jason Kim. The leadership structure is designed to ensure a smooth integration of the two companies' distinct capabilities.
"Integrating SciTec’s software and data capabilities will significantly enhance Firefly’s ability to deliver comprehensive, software-defined solutions for critical national security missions, especially in support of the Golden Dome missile defense program."
Targeting the Golden Dome Program
A primary focus of the combined entity will be the Golden Dome program, an initiative aimed at creating a comprehensive space-based missile defense shield. This multi-billion dollar program requires a combination of launch services, in-space platforms, and advanced data processing—all areas where the merged company will have expertise.
During a webcast, Jason Kim explained how Firefly and SciTec could contribute. He noted that Firefly's Alpha rocket could launch test targets, while its Elytra spacecraft could host interceptors. SciTec, he added, is positioned to provide the essential fire control and ground system elements.
Kim stated that together, the companies "can launch and deliver space-based interceptors, launch surrogate targets and hypersonic tests, and integrate data processing from a network of sensors."
Firefly's Alpha Rocket Status
The acquisition news comes as Firefly addresses challenges with its Alpha launch vehicle. The rocket is currently grounded following a September 29 incident where the first-stage booster for its upcoming Flight 7 mission was destroyed during a ground acceptance test at its Texas facility.
The booster was intended for a mission carrying a Lockheed Martin payload. This event occurred shortly after the Alpha rocket was cleared to fly following a different failure during its Flight 6 mission in April 2025, where the vehicle disintegrated after stage separation.
During the acquisition announcement, Jason Kim addressed the situation directly. "I have full confidence in our Alpha team to return to flight safely," he said. He added that more information and a revised plan for the Alpha program would be provided in the coming weeks.