Rocket Lab to Acquire Mynaric AG for $150M, Including $75M in Potential Earnout Payments.

Rocket Lab has agreed to acquire Mynaric AG, a German laser communication developer, for $75M. The acquisition also includes potential earnout payments of $75M. This acquisition is expected to expand Rocket Lab's capabilities in space communications.

Rocket Lab Corp (NASDAQ:RKLB) has announced an agreement to acquire Mynaric AG, a German laser communication developer, for $75 million. The acquisition also includes potential earnout payments of $75 million, contingent on Mynaric's revenue targets for 2025, 2026, and 2027 Rocket Lab to acquire Mynaric AG for $150M^[1].

Mynaric specializes in scalable laser communication terminals for air, space, and mobile applications, enabling high-speed and long-distance data transmission using laser beams instead of radio frequencies. The acquisition is expected to significantly enhance Rocket Lab's capabilities in space communications, positioning the company as a key end-to-end space solutions provider.

The transaction is subject to approval from German authorities and is anticipated to drive Rocket Lab's shares higher in after-hours trading. This acquisition follows Rocket Lab's recent delivery of two Explorer-class spacecraft to Kennedy Space Center for NASA's ESCAPADE Mars mission, highlighting the company's vertically integrated manufacturing capabilities and ability to execute complex interplanetary missions Could Rocket Lab’s (RKLB) Mars Mission Move Reveal a Shifting Playbook in Space Solutions?^[2].

Rocket Lab's outlook for 2028 projects $1.3 billion in revenue and $113.4 million in earnings, based on a projected 37.5% annual revenue growth rate and a $344.7 million increase in earnings from the current -$231.3 million Could Rocket Lab’s (RKLB) Mars Mission Move Reveal a Shifting Playbook in Space Solutions?^[2]. The acquisition of Mynaric AG is expected to contribute to these growth targets by expanding Rocket Lab's service offerings and entering new markets.

The acquisition also underscores Rocket Lab's ongoing need to secure funding for capital-intensive projects such as the Neutron rocket development, which continues to pressure free cash flow and amplify dilution risk until meaningful new revenue arrives. Recent equity offerings, including a completed $396.65 million follow-on equity offering, indicate management's commitment to shoring up the company's cash position as it advances these projects Could Rocket Lab’s (RKLB) Mars Mission Move Reveal a Shifting Playbook in Space Solutions?^[2].

In summary, Rocket Lab's acquisition of Mynaric AG represents a strategic move to expand its space communications capabilities and reinforce its position as a key player in the end-to-end space solutions market. However, the company's near-term financial risks, including heavy investment needs and shareholder dilution, must be carefully managed to ensure sustainable growth.