TAMPA, Fla. — Young space corporations made more acquisitions than their older peers over the past 12 months, in line with evaluation from British investment firm Seraphim Space.
Satellite maker York Space Systems, launcher Firefly Aerospace, defense contractor Anduril, and other “NewSpace” ventures formed the majority of the 28 mergers and acquisitions (M&A) Seraphim tracked over the period.
More established space firms and other corporations have traditionally led M&A activity within the industry.
Nonetheless, Seraphim vp Maureen Haverty said its data shows acquisitions are not any longer reserved for the deep pockets of legacy space players.
More acquisitions from corporations founded within the last decade is an indication of the broader sector’s maturity, Haverty said, and are available alongside an uptick within the variety of acquisitions led by institutional private equity firms.
Private equity firms are increasingly accountable for among the largest transactions within the industry, resembling Advent’s recently accomplished $6.4 billion deal for legacy satellite maker and operator Maxar Technologies.
The rise of personal equity investors suggests there are numerous undervalued businesses within the space industry that could possibly be acquired at low price, Haverty said, after which sold for profit once they ramp up revenues.
“They clearly see the potential for further consolidation and are more likely to drive a few of this themselves,” she said.
Space investment activity shows signs of potential recovery after declining last yr amid economic uncertainty, in line with Seraphim Space data for the primary half of this yr.
While investments and mega-rounds have fallen from 2021 highs, Haverty said startup activity and later-stage funding are higher than ever for space technology corporations — which Seraphim defines as space-dependent application firms, resembling ride-hailing service Uber, along with rocket, satellite, and other more conventional space businesses.
U.S.-based early-stage investor Space Capital also recently pointed to signs of a rebound for the space industry following its own research.