Intuitive Machines, a company known for its lunar landers, has announced an $800 million deal to acquire Lanteris Space Systems. The acquisition signals a major strategic shift for the company as it aims to expand its operations beyond lunar missions and into broader aerospace markets.
The agreement, which consists of cash and stock, is designed to position Intuitive Machines as a comprehensive provider of spacecraft for both government and commercial clients, covering areas from defense to communications.
Key Takeaways
- Intuitive Machines will acquire Lanteris Space Systems in an $800 million transaction.
- The deal includes $450 million in cash and $350 million in Intuitive Machines stock.
- This move is a strategic effort by Intuitive Machines to diversify beyond its current focus on lunar exploration.
- The combined company is projected to have over $850 million in annual revenue and a contract backlog of $920 million.
- The acquisition is expected to be finalized in the first quarter of next year, subject to regulatory approvals.
Details of the Acquisition
Intuitive Machines confirmed the definitive agreement to purchase Lanteris Space Systems from the private equity firm Advent International. The transaction is valued at a total of $800 million.
The payment structure is a mix of cash and equity. Intuitive Machines will pay $450 million in cash, supplemented by $350 million worth of its own company stock. Following the transaction, Advent International will continue to hold an undisclosed stake in the newly merged entity.
Company officials stated that the deal is on track to close in the first quarter of the upcoming year. However, the finalization is contingent upon receiving all necessary regulatory approvals.
A Strategic Leap Beyond the Moon
This acquisition marks a pivotal moment for Intuitive Machines, a company that gained prominence through its development of lunar landers for NASA missions. By integrating Lanteris, the company is actively moving to become a more versatile player in the space industry.
"This deal moves Intuitive Machines beyond the Moon and into a wider range of space projects," said CEO Steve Altemus, highlighting the company's ambition to become a full-service space firm capable of designing, building, and operating various types of spacecraft.
The goal is to serve a broader customer base, including defense, communications, and scientific organizations. This strategy of diversification is further evidenced by Intuitive Machines' recent purchase of KinetX, a company specializing in deep-space navigation.
Who is Lanteris Space Systems?
Lanteris Space Systems was formerly the satellite manufacturing division of Maxar Technologies. It specializes in building sophisticated satellites and spacecraft components for a range of applications, including national defense, global communications, and scientific research. The firm was part of Maxar when Advent International took Maxar private in a deal valued at approximately $4 billion in 2023.
Financial Outlook and Market Reaction
The combination of the two companies is expected to create a formidable entity in the aerospace sector. Projections indicate the merged company will generate more than $850 million in annual revenue.
As of September 30, the combined backlog of future contracts for the two companies stood at an impressive $920 million, signaling a strong pipeline of future work.
Despite the long-term strategic potential, the immediate market reaction was cautious. Shares of Intuitive Machines (LUNR) experienced a drop of approximately 5% in premarket trading following the announcement.
The news of the acquisition came as Intuitive Machines also released its third-quarter financial results. The company reported revenue of $52.4 million, which fell short of analysts' expectations of $68.1 million. It also posted a net loss of $10 million for the quarter. The company's existing contract backlog, primarily from work with NASA and the U.S. Air Force, was reported at $235.9 million prior to the merger announcement.
Building a Comprehensive Space Powerhouse
By acquiring Lanteris, Intuitive Machines gains immediate access to established expertise in satellite manufacturing and a diverse client portfolio. Lanteris has a long history of developing reliable spacecraft for critical missions, a capability that complements Intuitive Machines' focus on lunar landing systems.
This vertical integration allows the company to control more of the supply chain and offer end-to-end solutions, from mission design and spacecraft construction to flight operations and data analysis.
The move reflects a broader trend in the commercial space industry, where companies are consolidating and expanding their service offerings to compete for large-scale government and commercial contracts. With this acquisition, Intuitive Machines is positioning itself not just as a lunar specialist, but as a key contractor for a wide array of missions in Earth orbit and beyond.