Rocket Lab Closes Acquisition Of Space Hardware Company Planetary Systems Corporation
December 01 2021 - 4:05PM
Business Wire
Rocket Lab USA, Inc. (Nasdaq: RKLB) (“Rocket Lab” or “the
Company”), a global leader in launch services and space systems,
announced today that it has closed the previously-announced
transaction to acquire Planetary Systems Corporation (PSC), a
Maryland-based spacecraft separation systems company, for $42
million in cash and 1,720,841 shares of the Company’s common stock,
plus the potential for an additional 956,023 shares of common stock
for a performance earnout based on PSC’s CY 2022 and 2023 financial
results. Rocket Lab announced the execution of the agreement to
acquire PSC on 15 November, 2021 pending certain closing
conditions.
A trusted leader in separation systems and satellite dispensers
across the space industry, PSC’s flight-proven, cost-effective, and
lightweight hardware streamlines the process of attaching
satellites to rockets and releasing them in space while ensuring
they’re protected during the journey to orbit. PSC’s products to
date have a 100% mission success heritage across more than 100
missions launched with American launch providers including Rocket
Lab, SpaceX, United Launch Alliance, Northrop Grumman, and more;
NASA Space Shuttle and International Space Station missions; and
international launch vehicles operated by Arianespace, the Indian
Space Research Organisation (ISRO), the Japan Aerospace Exploration
Agency (JAXA), and others.
PSC’s products will become key offerings in Rocket Lab’s
vertically-integrated Space Systems division alongside its own
in-house manufactured and operated Photon spacecraft line, Maxwell
satellite dispensers, satellite components, and mission flight
software by Advanced Solutions, Inc (ASI), which recently joined
the portfolio through acquisition last month.
The deal also enables PSC to make use of Rocket Lab’s resources
and manufacturing capability to grow their already-strong
commercial hardware trade and continue serving their existing
satellite customers launching spacecraft on other launch vehicles.
PSC’s team of 25 people will continue to be led by the company’s
President and CEO Mike Whalen in Maryland, with founder Walter
Holemans also remaining in his role of Chief Engineer.
Rocket Lab CEO and founder, Peter Beck, says: “Easier and faster
access to space relies on proven, affordable hardware being
available at scale. By bringing PSC into the fold, Rocket Lab truly
simplifies the journey to orbit as a one-stop-shop for a customer’s
full mission needs – from launch, spacecraft build and operation
with Photon, manufacture of mission-critical components for
satellites, flight software, and now, separation systems. We’re
thrilled to welcome PSC to the team and further strengthen our
position as a leading end-to-end space company.”
PSC Chief Engineer and founder, Walter Holemans, says: “For over
20 years we’ve honed our craft and dedicated ourselves to producing
separation systems the satellite community can rely upon, and we’re
proud of our strong heritage of 100% mission success across more
than 100 missions. We’re excited to build on that distinguished
history by joining Rocket Lab and scaling our manufacturing to make
our hardware available to support more missions now and long into
the future.”
About Rocket Lab
Founded in 2006, Rocket Lab is an end-to-end space company with
an established track record of mission success. We deliver reliable
launch services, spacecraft components, satellites and other
spacecraft and on-orbit management solutions that make it faster,
easier and more affordable to access space. Headquartered in Long
Beach, California, Rocket Lab designs and manufactures the Electron
small orbital launch vehicle and the Photon satellite platform and
is developing the Neutron 8-ton payload class launch vehicle. Since
its first orbital launch in January 2018, Rocket Lab’s Electron
launch vehicle has become the second most frequently launched U.S.
rocket annually and has delivered 107 satellites to orbit for
private and public sector organizations, enabling operations in
national security, scientific research, space debris mitigation,
Earth observation, climate monitoring, and communications. Rocket
Lab’s Photon spacecraft platform has been selected to support NASA
missions to the Moon and Mars, as well as the first private
commercial mission to Venus. Rocket Lab has three launch pads at
two launch sites, including two launch pads at a private orbital
launch site located in New Zealand, one of which is currently
operational, and a second launch site in Virginia, USA which is
expected to become operational by the end of 2021. To learn more,
visit www.rocketlabusa.com.
Forward-Looking Statements
This press release may contain certain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of
1934, as amended. These forward-looking statements, including
without limitation expectations regarding the benefit of the PSC
acquisition, are based on Rocket Lab’s current expectations and
beliefs concerning future developments and their potential effects.
These forward-looking statements involve a number of risks,
uncertainties (many of which are beyond Rocket Lab’s control), or
other assumptions that may cause actual results or performance to
be materially different from those expressed or implied by these
forward-looking statements. Many factors could cause actual future
events to differ materially from the forward-looking statements in
this press release, including risks related to the global COVID-19
pandemic, including risks related to government restrictions and
lock-downs in New Zealand and other countries in which we operate
that could delay or suspend our operations; delays and disruptions
in expansion efforts; our dependence on a limited number of
customers; the harsh and unpredictable environment of space in
which our products operate which could adversely affect our launch
vehicle and spacecraft; increased congestion from the proliferation
of low Earth orbit constellations which could materially increase
the risk of potential collision with space debris or another
spacecraft and limit or impair our launch flexibility and/or access
to our own orbital slots; increased competition in our industry due
in part to rapid technological development and decreasing costs;
technological change in our industry which we may not be able to
keep up with or which may render our services uncompetitive;
average selling price trends; failure of our satellites to operate
as intended either due to our error in design in production or
through no fault of our own; launch schedule disruptions; supply
chain disruptions, product delays or failures; design and
engineering flaws; launch failures; natural disasters and epidemics
or pandemics; changes in governmental regulations including with
respect to trade and export restrictions, or in the status of our
regulatory approvals or applications; or other events that force us
to cancel or reschedule launches, including customer contractual
rescheduling and termination rights; risks that acquisitions may
not be completed on the anticipated timeframe or at all or do not
achieve the anticipated benefits and results; and the other risks
detailed from time to time in Rocket Lab’s filings with the
Securities and Exchange Commission under the heading “Risk Factors”
and elsewhere (including that the impact of the COVID-19 pandemic
may also exacerbate the risks discussed therein). There can be no
assurance that the future developments affecting Rocket Lab will be
those that we have anticipated. Except as required by law, Rocket
Lab is not undertaking any obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20211201006123/en/
+ Rocket Lab Media Contact Murielle Baker
media@rocketlabusa.com
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