Redwire to acquire satellite manufacturer Hera Systems, bolstering defense portfolio

WASHINGTON — Redwire Corporation, a space infrastructure company, announced Aug. 14 it plans to acquire Hera Systems, a manufacturer of small satellites focused on national security space missions.

The acquisition aligns with Redwire’s efforts to strengthen its foothold in the defense market and support specialized national security space missions in geostationary orbit, the company said in a statement.

Jacksonville-based Redwire was formed in 2020 through the merger of several space technology companies. Hera Systems, a private company founded in 2013 and headquartered in San Jose, California, develops small satellite technologies for the aerospace and defense industry. The company’s geostationary satellite platform was selected for the U.S. Space Force’s Tetra 5 in-orbit refueling experiment planned for 2025.

The combined entity will seek to compete for customers in sectors including space domain awareness, rendezvous and proximity operations, mesh network communications, and in-orbit servicing.

“This transaction fits squarely within our growth strategy,” said Peter Cannito, chairman and CEO of Redwire.

The company has been actively expanding its national security space operations, recently securing a prime contract to develop a very low Earth orbit (LEO) spacecraft for DARPA’s Otter initiative. 

Financial details of the acquisition have not been disclosed, but Redwire indicated that it will utilize its balance sheet liquidity to finance the deal. Hera Systems reported $15 million in revenue for the year ending December 31, 2023, and Redwire expects the combination to contribute meaningfully to its future growth and profitability. 

As a result of this acquisition, Redwire has adjusted its full-year 2024 revenue guidance from $300 million to $310 million. The deal is expected to close in the third quarter of 2024.

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