Rocket Lab acquires SolAero Holdings for $80M to boost space solar cell production

By: Asia Business Outlook | Wednesday, 19 January 2022

Rocket Lab is on a quest to integrate space solutions vertically. On Tuesday, the launch and space systems firm announced the completion of a $80 million cash agreement to buy SolAero Holdings, a producer of space solar power supplies and precision aerospace structures.

Rocket Lab now has another significant satellite manufacturing supplier in-house after purchasing SolAero, a 24-year-old New Mexico-based firm. Having access to Rocket Lab's capabilities will also offer SolAero the manufacturing capability it needs to enhance high-volume production and scale, allowing it to better serve other clients.

As per Morgan Bailey, director of communications at Rocket Lab, the acquisition aids the company's long-term ambition by allowing it to take a larger share of the space market.

"For example, Rocket Lab may not be launching a specific spacecraft with Electron or Neutron, but by supplying solar panels or other components like star trackers, reaction wheels, flight software, and separation systems, we can still capture revenue and play a role in the mission," Bailey explained. "Of course, SolAero technology will be included into Rocket Lab's own line of Photon spacecraft, enhancing our vertical spacecraft as well as enhancing our vertical integration

goal even further."

The deal was originally announced, pending certain closing conditions, in December 2021, just a few months after Rocket Lab announced the acquisition of Colorado-based Advanced Solutions, Inc. (ASI), a space software company, for $40 million. The ASI acquisition aimed to help Rocket Lab build out its Space Systems division and achieve its goal of becoming an “end-to-end” space company, one that spans spacecraft manufacture, satellite subsystems, flight software, ground operations and launch, according to the company.

The SolAero merger also follows the acquisitions of Planetary Systems Corporation in December 2021, a spacecraft separation systems company, and Sinclair Interplanetary in April 2020, a satellite components manufacturer.

In a statement, Rocket Lab CEO and founder Peter Beck stated, "SolAero is a very complementary addition to Rocket Lab's vertically integrated business model, enabling us to supply comprehensive space mission solutions for our clients." "The team at SolAero has allowed trailblazing projects, delivering space solar power solutions for the James Webb Space Telescope and missions on Mars such as InSight and Ingenuity, with over 1,000 successful flights under their credit."

The Ingenuity chopper successfully flew on Mars in April of last year, and the Mars Insight Lander was the biggest solar array ever placed on the surface of Mars.

SolAero’s products have supplied power to NASA’s Parker Solar Probe and several Cygnus Cargo Resupply Missions to the International Space Station. The company has also provided power to OneWeb’s broadband constellation, and it has been selected to supply Solar Power Modules for NASA’s Artemis lunar exploration plans, which should enable future missions to Mars.

SolAero's 425 personnel will join Rocket Lab, bringing the total number of employees at the firm to over 1,100 across offices in California, Virginia, Colorado, Maryland, Toronto, New Zealand, and now Albuquerque. President and CEO Brad Clevenger will continue to lead the team.