- The Space Investor
- Posts
- š L3Harris Acquires Aerojet
š L3Harris Acquires Aerojet
š L3Harris Acquires Aerojet
The Space Scoop
Week Ended 12.23.2022
Happy Friday! And an early Happy Holidays to all our of readers š . Lets dive in.*Note: This will be the last newsletter of 2022. The team is taking next week off, though you can still find us on Twitter. We will return to your inboxes again on January 6th. Stay safe and see you in 2023!*
š Market Max-Q
S&P 500: 3,844.81 -0.2%NASDAQ: 10,497.87 -1.9%UFO: 19.46 -2.3%ROKT: 39.19 -0.6%ARKX: 12.17 -1.4%SSIT: 45.00 -3.1%LLAP: 1.45 +5.1%SATL: 3.05 +3.4%SIDU: 0.98 -23.9%SATX: 6.51 -35.8%1W return as of 4:00pm EDT.
š Top Stories
1) L3Harris ($LHX) announced it will acquire Aerojet Rocketdyne ($AJRD) in an all-cash transaction valued at $4.7B.
The company found its new owner, following the terminated acquisition from Boeing ($BA) in February of this year. The deal equates to $58.00 per share and is inclusive of net debt.
The acquisition will be funded with existing cash and the issuance of new debt by L3. The deal is expected to close in 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
Market Reaction: LHX -3.6%; AJRD 1.3%
2) Rocket Lab ($RKLB) rescheduled its first Electron launch from U.S. soil to January 2023.
The move of the launch window was driven by weather and the additional time that NASA and the FAA required to complete essential regulatory documentation for launch.
The company also provided an update on the effect to prior financial guidance. Revenue recognition will take place in Q1ā23 and the Q4ā22 revenue estimate (from Nov. 9) of $51-54M is now $46-47M.
3) Virgin Orbit ($VORB) raised $20M through a senior secured convertible note issued to Virgin Investments Limited.
The principal amount is convertible into shares of the companyās common stock or other qualified securities with an annual interest rate of 6.0%, payable in cash semi-annually with a maturity date of November 4, 2024.
The company also received the U.K.ās first orbital launch license this week.
š°ļø In Other News
Axiom Space Currently Raising Series C Round
Following the announcement of a $50M investment by South Korean pharmaceutical company Boryung, it was revealed the investment into Axiom is a āpart of a larger funding round.ā Axiomās chief investment officer Amir Blachman noted that the company āwill [look to] close [it] out toward the beginning of the new year.ā This follows a $130M Series B round last raised in February 2021.
L3Harris Divests Visual Information Solutions Business
$LHX announced the sale to NV5 Global ($NVEE) with an estimated price of up to $100M. The divestiture continues the companyās broader strategy to optimize its portfolio and align long-term innovation investments for national security priorities. The transaction is expected to close mid-2023.
š Chart of the Week
Two decades of aerospace industry consolidation in one chart. Zoom in to see how prime contractors $LMT, $BA, $RTX, $NOC and $GD become what they are today.
Source: Commission on the Future of the United Space Aerospace Industry
š Links
ā¢ SpaceX Announced Starlink Has Crossed 1M+ Subscribersā¢ General Dynamics ($GD) CFO To Retireā¢ Spire ($SPIR) Announces Completion of Exchange Offer For Remaining Outstanding Warrantsā¢ Momentus ($MNTS) Announces Second Services Agreement With CUAVAā¢ AST SpaceMobile ($ASTS) and AT&T ($T) Release Partnership Videoā¢ Iridium ($IRDM) Introduces Its New Satellite IoT Data Serviceā¢ Terran Orbital ($LLAP) Completes 10 Satellite Bus Order to Lockheed Martin ($LMT)
š£ļø Opinion
ā¢ Space Markets: The Year in Reviewā¢ Hereās Why L3Harrisā ($LHX) Latest Merger Gambit Will Pay Off for Investorsā¢ Astra ($ASTR) CEO Is Doubling Down on Sharesā¢ 3 Space Stocks You Can Buy on the Dip Nowā¢ AI in Space and Its Future Use in Warfareā¢ Starship, Twitter and Musk
š Earnings Calendar
ā¢ $NOC: January 26 - Before Market Open