Shares of space firm Firefly surge on deal to acquire defense tech SciTec

Shares of Firefly Aerospace, a mid-cap developer of launch and orbital vehicles, have jumped nearly 22% in early trading today, October 6, after the company announced its acquisition national security technology developer SciTec to expand its capabilities in the U.S. defense sector. Firefly went public on the Nasdaq in August, and its stock has since lost almost 40% of its value.

Firefly shares have surged 22% to $33.33 apiece in the first minutes of premarket trading today as investors react to news of the acquisition. The transaction is valued at $855 million, including $300 million in cash and $555 million in newly issued Firefly shares to SciTec owners at $50 per share. That price implies an 83% premium to SciTec’s valuation on Friday, October 3, the last trading day before the deal was announced.

The companies expect to close the transaction by year-end, subject to regulatory approval. Once completed, SciTec will operate as a Firefly subsidiary.

Firefly CEO Jason Kim said the acquisition strengthens the company’s ability to support a growing number of defense missions, particularly within the Golden Dome program, a planned multilayer missile defense system designed to protect the U.S. from airborne threats. The initiative is estimated to cost about $831 billion over two decades.

SciTec’s software and data-processing systems are used for intelligence, surveillance, tracking, and missile-warning operations, the companies said. In April, SciTec won a $259 million U.S. Space Force contract to develop the Future Operationally Resilient Ground Evolution system, a cyber-secure data-processing framework that is supposed to enhance real-time missile-tracking capabilities.

Firefly develops launch vehicles, lunar landers, and orbital spacecraft, providing end-to-end mission services for both government and commercial clients. The company says it is the only provider capable of preparing and launching a satellite mission within 24 hours.

In the first quarter of 2025, Firefly achieved a successful lunar landing with its Blue Ghost spacecraft for NASA, one of four lunar missions under contract through 2029, points out Motley Fool contributor Rich Smith.

Firefly’s August IPO was the largest U.S. space-tech listing of 2025, according to Reuters. The company sold shares at $45 apiece, above the marketed range of $35-39 per share, raising $933 million. The stock rose 55% on the debut day, valuing the company at $9.84 billion, but has since declined about 39% from the IPO price.

Smith attributes the recent volatility to a series of testing failures and weak financial results. In September, a Firefly rocket exploded during engine testing in Texas ahead of a planned launch for Lockheed Martin, the second major accident this year after an April in-flight failure.

Firefly’s second-quarter revenue fell 26% year over year to $15.5 million, Smith points out. The company’s growing investment in new products, including its Eclipse medium-lift rocket and Elytra orbital spacecraft, widened its net loss by 19%.

Even so, the management projects 2025 revenue of $133-145 million, up 119-138%.

According to MarketWatch data, Firefly stock has four “buy” ratings and three “hold” recommendations, with an average target price of $53 per share, for upside of nearly 94%.

The AI translation of this story was reviewed by a human editor.