Rocket Lab, a publicly traded aerospace company, has strengthened its position in the defense sector by acquiring Geost, a provider of electro-optical and infrared (EO/IR) sensor payloads utilized in U.S. military satellites. The deal, announced May 27, involves a $125 million cash payment and $150 million in stock, with an additional $50 million contingent on revenue targets. This acquisition grants Rocket Lab access to cutting-edge satellite sensor technology employed by the U.S. Department of Defense for critical applications. “The acquisition of Geost will bring on board critical technology and payloads that are relied upon by the Department of Defense,” stated Rocket Lab’s CEO, Peter Beck.
This strategic move propels Rocket Lab’s ambitions to become a leading contractor for Pentagon satellite programs. With Geost’s EO/IR payloads now integrated, Rocket Lab is well-positioned to compete for contracts related to the Space Development Agency’s (SDA) Proliferated Warfighter Space Architecture (PWSA) program and the Golden Dome missile defense system. Rocket Lab currently holds a $515 million contract to manufacture and operate 18 data-relay satellites for the SDA’s Transport Layer. The Geost acquisition significantly enhances their prospects for the SDA’s Tranche 3 Tracking Layer procurement, a project anticipating over 50 satellites equipped with advanced missile tracking sensors. “It really is a logical addition to a vertically integrated national security offering,” Beck added.
Rocket Lab’s CFO, Adam Spice, highlighted the competitive advantage gained through the integration of Geost’s payload capabilities. “This also positions us to be a competitive provider for the Golden Dome missile defense system,” he explained. The Golden Dome project, initiated by President Trump, aims to create a space-based missile defense system within three years, with an estimated budget of $175 million. The project's focus on rapid deployment and cost efficiency aligns perfectly with Rocket Lab’s capabilities. “The President’s recent announcement made it clear that there’s a strong emphasis on utilizing efficient and fast providers, which positions us well to capture these opportunities,” Spice noted. Geost, with its 115 employees, will join Rocket Lab's growing global workforce, expanding to over 2,600 across various locations. ATL Partners, which acquired Geost in 2021, will reorganize its remaining units into a new defense electronics holding company.