Redwire Corporation, a leading space infrastructure company, announced on August 14 its plans to acquire Hera Systems, a prominent manufacturer of small satellites with a focus on national security space missions. This acquisition reflects Redwire's strategic efforts to solidify its position within the defense market and provide comprehensive support for specialized national security missions in geostationary orbit.
The company's statement highlighted that the acquisition aligns perfectly with Redwire's expansion strategy. Redwire, headquartered in Jacksonville, was formed in 2020 through the amalgamation of various space technology companies. Hera Systems, a privately held company established in 2013 and headquartered in San Jose, California, specializes in developing cutting-edge small satellite technologies for the aerospace and defense industry. Notably, Hera Systems' geostationary satellite platform has been selected for the U.S. Space Force's Tetra 5 in-orbit refueling experiment, slated for 2025.
The merger of these two companies is poised to create a powerful entity capable of competing effectively for clients across a wide spectrum of sectors, including space domain awareness, rendezvous and proximity operations, mesh network communications, and in-orbit servicing. This strategic move promises to enhance Redwire's capabilities and expand its reach in the national security space sector.
"This transaction fits squarely within our growth strategy," affirmed Peter Cannito, Chairman and CEO of Redwire. The company has been actively expanding its national security space operations, recently securing a prime contract to develop a very low Earth orbit (LEO) spacecraft for DARPA's Otter initiative.
While financial details of the acquisition remain undisclosed, Redwire has indicated that it will leverage its balance sheet liquidity to finance the deal. Hera Systems reported $15 million in revenue for the year ending December 31, 2023, and Redwire anticipates that the combined entity will make a significant contribution to its future growth and profitability.
In response to this strategic acquisition, Redwire has revised its full-year 2024 revenue guidance from $300 million to $310 million. The deal is expected to close in the third quarter of 2024.