Firefly Aerospace Acquires Defense Tech Company for $855M

Shares of Firefly Aerospace (FLY) experienced a 12% surge on Monday following the announcement of its strategic acquisition of defense technology contractor SciTec for $855 million. This move signals Firefly’s intent to bolster its presence and capabilities in the high-stakes national security sector.

The acquisition, finalized on Sunday, is structured as a combination of $300 million in cash and $555 million in Firefly stock. The deal is anticipated to close by the end of the year, pending regulatory approvals and customary closing conditions.

“The incorporation of SciTec’s advanced technologies will significantly augment our capacity to provide integrated, software-defined solutions aligned with critical national security objectives, particularly programs like Golden Dome,” stated Firefly CEO Jason Kim in a press release. This highlights the synergistic potential of the deal, bringing together Firefly’s launch capabilities with SciTec’s expertise in defense technologies.

Firefly plans to integrate SciTec’s proprietary software into its existing suite of space-based tools. The integration is expected to enhance Firefly’s offerings with critical capabilities, including advanced missile warning, tracking and defense systems, as well as autonomous command and control functionalities. These enhancements are intended to support and improve Firefly’s existing launch and space services, making them more competitive in the evolving space landscape.

The stock’s recent positive movement follows a volatile period. Last week, Firefly shares faced a temporary setback, plummeting over 20% after a rocket explosion during a ground test at their Texas facility. This incident followed a Federal Aviation Administration (FAA) investigation into a previous rocket failure, which Firefly successfully navigated, receiving clearance to resume operations.

Firefly’s journey as a publicly traded company began with a strong debut on the Nasdaq earlier this summer, marking it as the third significant space tech IPO of 2025. The initial public offering was met with enthusiasm from investors, causing the stock to soar by over 30% on its first day of trading. However, the shares have since experienced a correction, reflecting the inherent risks and challenges associated with the space industry.

Firefly has been strategically cultivating partnerships with key government and defense entities, solidifying its position in the national security space. This includes a substantial $177 million contract from NASA and also a $50 million investment from Northrop Grumman (NOC) that would work in the area of a medium launch vehicle, called Eclipse. These collaborations underscore the growing confidence in Firefly’s technological capabilities and strategic direction.

Upon completion of the acquisition, SciTec, currently headquartered in Princeton, New Jersey, will operate as a subsidiary of Firefly Aerospace. Jim Lisowski will continue to lead SciTec as its CEO, ensuring continuity and leveraging his expertise to drive innovation within the integrated organization.

From a technical perspective, the SciTec acquisition provides Firefly with immediate access to mature technologies and intellectual property in areas crucial for national security applications. This reduces Firefly’s research and development timeline and allows them to compete more effectively for lucrative government contracts. From a business perspective, the alignment with a revenue-generating company like SciTec could enhance Firefly’s overall financial prospects, reducing their reliance on capital markets and funding.