Why Firefly Aerospace Stock Popped Today

Core Viewpoint - Firefly Aerospace announced the acquisition of defense contractor SciTec for $855 million, leading to a 7.7% increase in its stock price [1]. Group 1: Acquisition Details - Firefly will pay $300 million in cash and $555 million in stock at a valuation of $50 per share to acquire SciTec [1]. - SciTec has trailing-12-month revenue of $164 million, which is larger than Firefly's revenue of less than $103 million during the same period [4][8]. - The acquisition is expected to more than double Firefly's annual revenue stream and enhance its role in defense contracting [5]. Group 2: Valuation Analysis - The valuation of SciTec at $50 per share is notably higher than Firefly's recent stock price of approximately $27 per share, suggesting a potential negotiation advantage for SciTec [3]. - Firefly's price-to-sales ratio for the acquisition is 5.2, which is significantly lower than its own sales valuation of 42, indicating a favorable deal [6].