🚀 York Space Hits Unicorn Status

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The Space Scoop

Week Ended 10.07.2022

Happy Friday! We had three acquisitions take place this week in the face of a pretty otherwise muted newswire. Markets rallied hard early in the week but gave back most of its gains by the Friday close. Lets dive in.

📈 Market Max-Q

S&P 500: 3,639.67 +1.5%NASDAQ: 10,652.41 +0.7%UFO: 18.55 +3.9%ROKT: 34.97 +5.2%ARKX: 12.49 +1.1%SSIT: 60.5 +0.0%RDW: 2.67 +12.2%LLAP: 1.95 +10.2%PL: 5.94 +0.4%VORB: 2.86 -6.8%1W return as of 4:00pm EDT.

🚀 Top Stories

1) Redwire ($RDW) has acquired QinteQ Space NV, the Belgium-based commercial space business, for €32M.

• The company provides design and integration of space infrastructure and other instruments for end-to-end space missions with revenue of €49M, after tax profit of €3M and contract backlog of €113M.

• Upon closing, the firm expects the transaction to be accretive to Redwire’s adjusted EBITDA and free cash flow. AE Industrial Partners is providing the financing commitment for the transaction.

 2) Viasat ($VSAT) has agreed to sell part of its Government-Systems Unit business to L3Harris ($LHX) for $1.96B and shares jumped +27%.

• The sale of the ‘Link 16 Tactical Data Links’ business includes the Multifunctional Information Distribution System (MIDS) platforms and associated next-generation Link 16 terminals and handheld radios, as well as the Link 16 to space business.

• L16 TDL brought in ~$400M of revenue and an ~$125M of adjusted EBITDA in the LTM ended June 30, 2022.

• Viasat intends to use the proceeds of the deal to reduce net leverage and increase liquidity.

 3) AE Industrial Partners acquired a 51% majority stake in York Space Systems at a rumored $1.125B valuation.

• York is an independent provider of small satellites, satellite components and turnkey mission operations. The deal now makes the company the latest space unicorn.

• BlackRock Private Equity Partners also agreed to invest alongside AEI in the transaction.

• York also announced a contract worth up to $200M with Space Development Agency contract for 12 satellites this week.

 4) Astroscale has secured a $35M loan from MUFG Bank.

• The firm signed a three-year term loan leveraging the credit guarantee program offered by Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SMRJ).

• Astroscale is now eligible for funding through SMRJ’s credit guarantee program with a 50% guarantee for principal, up to $17.5M.

🔭 Image of the Week

Firefly Aerospace's first orbital launch with their Alpha rocket was a success.

🔗 Links

• Sidus ($SIDU) Announces $1.9M+ New Purchase Orders in Q3’22• What’s Next for Astra ($ASTR) Podcast With Chris Kemp• Virgin Orbit’s ($VORB) Next Rocket Ready for Cornwall• Viasat ($VSAT) and Inmarsat ($ISAT) Confident Their Combination Benefits Consumers• Aerojet Rocketdyne ($AJRD) Tests Next Generation Large Solid Rocket Motor• Rocket Lab ($RKLB) Successfully Launches Electron's 31st Mission

🗣️ Opinion

• September Space Stock Review• Revisiting Cathie Wood’s Intergalactic ETF ($ARKX)• Spire ($SPIR): Profitability or Bust• Viasat ($VSAT): A Big Launch• Be Contrarian and Buy Maxar ($MAXR)

📅 Earnings Calendar

• $PL: October 12 - Investor Day• $LMT: October 18 - Before Market Open• $IRDM: October 20 - Before Market Open• $BA: October 26 - Before Market Open• $GD: October 26 - Before Market Open• $NOC: October 27 - Before Market Open

*Company confirmed dates only.