Firefly Aerospace jumps 10% after buying defense tech firm for $855 million

Firefly Aerospace experienced a notable 10% increase in its stock during premarket trading on Monday, following the announcement of its acquisition of defense technology firm SciTec for a substantial $855 million. This strategic move, revealed on Sunday, aims to bolster Firefly's offerings in national security and is expected to finalize by year-end. The acquisition deal comprises $300 million in cash alongside $555 million in Firefly shares. CEO Jason Kim highlighted the acquisition's significance, stating, "These capabilities significantly enhance our ability to deliver integrated, software-defined solutions for critical national security imperatives, particularly Golden Dome." Firefly intends to incorporate SciTec's advanced software into its existing tools, enhancing its services in missile warning, tracking, and autonomous command control. This positive news comes on the heels of a challenging period for Firefly, as shares had plummeted over 20% in a single trading session last week due to a rocket explosion during a ground test in Texas. This incident occurred shortly after the Federal Aviation Administration cleared the company following an investigation into a previous rocket failure. Firefly's shares made a strong debut on the Nasdaq this summer, initially rising over 30% on its first trading day, driven by robust investor interest. However, the stock has since experienced some retracement. The company is establishing a solid foothold in the national security sector, with significant partnerships, including a recent $177 million contract with NASA and a $50 million investment from Northrop Grumman. Upon completion of the acquisition, SciTec will function as a subsidiary under the leadership of its current CEO, Jim Lisowski.