Redwire Completes Acquisition of Hera Systems, Expanding Company’s National Security Spacecraft Portfolio

Rhea-AI Summary

Redwire (NYSE: RDW) has completed its acquisition of Hera Systems, a spacecraft development company specializing in national security space missions. This strategic move expands Redwire's capabilities in geostationary orbit (GEO) and strengthens its position in the national security space sector. Hera Systems reported $15 million in revenue for 2023, contributing to Redwire's growth. As a result, Redwire has adjusted its 2024 revenue guidance from $300 million to $310 million. The acquisition aligns with Redwire's goal of becoming a leading provider for proliferated GEO constellations and enhances its ability to offer mission-critical capabilities to national security customers.

Positive

• Acquisition expands Redwire's spacecraft portfolio for national security space missions in GEO
• Hera Systems reported $15 million in revenue for 2023
• Redwire increased its 2024 revenue guidance from $300 million to $310 million
• Strengthens Redwire's position in the national security space sector

Negative

• None.

Insights

Financial Analyst

Redwire's acquisition of Hera Systems marks a strategic expansion into the national security space sector, particularly in GEO missions. The deal's financial implications are significant:

• Hera Systems' $15 million revenue in 2023 demonstrates its profitability and growth potential.
• Redwire's 2024 revenue guidance increase from $300 million to $310 million suggests an immediate 3.33% boost in projected earnings.

This acquisition aligns with the industry trend of consolidation in the space sector, potentially enhancing Redwire's competitive position. However, investors should monitor integration costs and the realization of synergies to assess the long-term value creation from this deal.

Space Technology Expert

The acquisition of Hera Systems significantly enhances Redwire's capabilities in the critical GEO domain. This move is strategically important because:

• GEO is important for national security space architectures, offering persistent coverage and high-bandwidth communications.
• Specialized GEO missions often involve advanced technologies like space situational awareness and signal intelligence.
• The expanded portfolio positions Redwire to compete for high-value, classified contracts in the proliferated GEO constellation market.

This acquisition could accelerate Redwire's technological advancement and market penetration in the rapidly evolving space defense sector, potentially leading to increased contract opportunities and revenue streams.

National Security Analyst

Redwire's acquisition of Hera Systems is a strategic move in the evolving landscape of national security space:

• It addresses the growing demand for specialized GEO capabilities in defense and intelligence applications.
• The deal aligns with the U.S. government's focus on space resilience and distributed architecture.
• Redwire's enhanced portfolio could contribute to countering emerging threats in space, such as anti-satellite weapons and space-based electronic warfare.

While this positions Redwire more competitively for national security contracts, investors should be aware of the complex and often unpredictable nature of government procurement processes in this sector. The success will largely depend on Redwire's ability to leverage Hera's expertise in securing and executing high-priority national security space projects.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Redwire Corporation (NYSE: RDW), a leader in space infrastructure for the next generation space economy, today announced that it has completed its previously announced acquisition of Hera Systems, Inc., a spacecraft development company with expertise in specialized missions for national security space customers. The acquisition of Hera Systems expands Redwire’s spacecraft portfolio to support specialized national security space missions in geostationary orbit (GEO).

“The acquisition of Hera Systems is an exciting and important milestone in Redwire’s growth strategy as we move up the value chain within the national security space sector,” said Peter Cannito, Chairman and CEO of Redwire. “Our expanded spacecraft portfolio enables us to offer our customers mission-critical capabilities in GEO, an increasingly important domain within today’s national security space architectures. We look forward to bringing together our highly complementary solutions as we continue to deliver for our national security customers and advance our goal of becoming a leading provider for proliferated GEO constellations.”

As previously announced, Hera Systems has achieved profitable topline growth, recording $15 million in revenue for the year ended December 31, 2023. As part of this acquisition, Redwire adjusted its full-year 2024 guidance from $300 million in revenue to $310 million in revenue.

Advisors

GH Partners LLC served as financial advisor and Hogan Lovells served as legal advisor to Redwire.

About Redwire

Redwire Corporation (NYSE:RDW) is a global space infrastructure and innovation company enabling civil, commercial, and national security programs. Redwire’s proven and reliable capabilities include avionics, sensors, power solutions, critical structures, mechanisms, radio frequency systems, platforms, missions, and microgravity payloads. Redwire combines decades of flight heritage and proven experience with an agile and innovative culture. Redwire’s approximately 700 employees working from 16 facilities located throughout the United States and Europe are committed to building a bold future in space for humanity, pushing the envelope of discovery and science while creating a better world on Earth. For more information, please visit redwirespace.com.

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Media Contact:

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Investors:

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Source: Redwire Corporation

FAQ

What company did Redwire (RDW) acquire?

Redwire (NYSE: RDW) acquired Hera Systems, a spacecraft development company specializing in national security space missions.

How much revenue did Hera Systems generate in 2023?

Hera Systems reported $15 million in revenue for the year ended December 31, 2023.

How has the acquisition affected Redwire's (RDW) 2024 revenue guidance?

Redwire adjusted its full-year 2024 revenue guidance from $300 million to $310 million following the acquisition of Hera Systems.

What is the strategic importance of the Hera Systems acquisition for Redwire (RDW)?

The acquisition expands Redwire's spacecraft portfolio to support specialized national security space missions in geostationary orbit (GEO) and strengthens its position in the national security space sector.