Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - Private equity firm ATL Partners announced Monday it has completed the sale of Geost, LLC to Rocket Lab USA, Inc. (NASDAQ:RKLB), finalizing a transaction that transitions its remaining defense portfolio companies into a new platform called Trident Solutions. Rocket Lab’s stock has shown remarkable momentum, delivering a 735% return over the past year, according to InvestingPro data.
The sale concludes ATL’s investment in Geost, which it acquired in 2021. Under ATL’s ownership, Geost expanded its portfolio of electro-optical and infrared sensing systems for national security space missions, including missile warning and space domain awareness capabilities. The acquisition aligns with Rocket Lab’s growth trajectory, with InvestingPro showing a 54% revenue increase in the last twelve months and strong liquidity position with current assets more than twice its short-term obligations.
"Demand for Geost’s specialized optical sensor solutions and purpose-built payloads over the past several years has been remarkable," said Mike Kramer, Partner at ATL Partners, in a statement based on the company’s press release.
Following the transaction, ATL’s remaining defense electronics portfolio, which includes Trident Systems and Ophir Corporation, will operate under the Trident Solutions brand. The platform will continue to focus on spaceflight units, processing systems, command and control solutions, and atmospheric sensors.
Bill Gattle, General Manager of Geost and CEO of what was formerly known as LightRidge Solutions, attributed the successful transaction to ATL’s support and the Geost team’s efforts.
Baird served as financial advisor to LightRidge during the transaction, with Gibson, Dunn & Crutcher LLP providing legal counsel.
The financial terms of the deal were not disclosed in the announcement. Rocket Lab, currently valued at $21.58 billion, maintains a solid balance sheet with more cash than debt. For detailed analysis and 12 additional exclusive insights about RKLB, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Rocket Lab USA reported a record second-quarter revenue of $144.5 million, exceeding both its forecast of $134.28 million and analyst estimates. Despite this revenue success, the company reported an earnings per share loss of $0.13, which was greater than the expected loss of $0.09. Rocket Lab has also completed its acquisition of Geost, LLC for $275 million, a move that includes a mix of cash and stock, along with a potential earnout tied to future revenue targets. The acquisition is intended to enhance Rocket Lab’s capabilities in national security space missions.
In response to Rocket Lab’s strong second-quarter performance, several firms have adjusted their price targets for the company. Needham increased its price target to $55, citing the company’s strong results and maintaining a Buy rating. Similarly, KeyBanc Capital Markets raised its price target to $50, highlighting the company’s stronger margins and progress in its Neutron rocket development program. Cantor Fitzgerald also raised its price target to $54, noting the company’s successful Electron launches and overall strong quarterly performance. These developments indicate increased confidence from analysts in Rocket Lab’s future growth and performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.