Shares of Firefly Aerospace (NASDAQ:FLY) rose in premarket trading on Sunday after the space technology company said it would buy national security firm SciTec in a deal valued at about $855 million.
The transaction will be funded with $300 million in cash and $555 million in new Firefly shares issued at $50 per share to SciTec’s shareholders, the company said in a statement.
Nasdaq-listed Firefly shares rose nearly 7% to $29.25 as of 22:33 ET.
Princeton, New Jersey-based SciTec develops missile warning and tracking systems, as well as defense analytics, intelligence, surveillance, and reconnaissance technologies.
Texas-based Firefly said the acquisition would enhance its ability to support defense missions, adding that SciTec would also bring AI-enabled, low-latency threat detection technologies designed to support U.S. national security programs such as Golden Dome.
The acquisition is expected to close by the end of 2025, subject to regulatory approvals and customary conditions. SciTec will operate as a wholly owned subsidiary after the deal, with its current leadership reporting to Firefly’s CEO.
Source :
https://www.investing.com/news/stock-market-news/firefly-aerospace-shares-rise-on-855-mln-deal-to-acquire-scitec-4271510
