Firefly Expands Into AI-Powered Defense Systems With SciTec Purchase

Core Insights - Firefly Aerospace announced the acquisition of SciTec, Inc. for approximately $855 million, consisting of $300 million in cash and $555 million in newly issued shares priced at $50 each, leading to a significant increase in Firefly's stock price in premarket trading [1][4] Group 1: Acquisition Details - The acquisition aims to integrate Firefly's launch and orbital services with SciTec's advanced mission software and AI systems, enhancing capabilities in missile warning and multi-domain operations [2] - SciTec, headquartered in Princeton, New Jersey, operates five additional facilities near key space and defense customers, which will strengthen Firefly's offerings in critical defense programs [3] Group 2: Strategic Benefits - The acquisition is expected to enhance Firefly's support for defense missions and provide operational advantages through SciTec's proven software and data processing capabilities [4] - SciTec's tools for missile warning, ISR, and autonomous command-and-control will complement Firefly's rapid-response launch and orbital vehicles, creating a comprehensive suite from sensors to space platforms [5] Group 3: Financial Performance - For the 12 months ending June 30, 2025, SciTec generated approximately $164 million in revenue, primarily from intelligence, defense, and commercial clients [6] - Earlier in the year, SciTec secured a $259 million award from the U.S. Space Force to enhance the FORGE ground processing framework, aimed at improving missile-warning and tracking solutions [6] Group 4: Operational Structure Post-Acquisition - Following the acquisition, targeted for completion by the end of 2025, SciTec will function as a subsidiary of Firefly, led by its current CEO, Jim Lisowski, reporting to Firefly's CEO, Jason Kim [7] - As of June 30, 2025, Firefly Aerospace held cash and cash equivalents of $221.43 million, positioning the company well for the acquisition [7]