Rocket Lab to acquire Geost for $275 million

LONG BEACH, Calif. - Rocket Lab Corporation (NASDAQ:RKLB), a significant player in launch services and space systems whose stock has surged over 500% in the past year, has announced its definitive agreement to acquire Geost, LLC, an Arizona-based company specializing in electro-optical and infrared payloads for national security satellites. According to InvestingPro analysis, the company, currently valued at $13.2 billion, appears overvalued based on their proprietary Fair Value calculations. The transaction, valued at $275 million, comprises $125 million in cash and $150 million in Rocket Lab common stock, with an additional earnout potential of up to $50 million based on revenue targets. With a healthy current ratio of 2.08 and moderate debt levels, Rocket Lab appears well-positioned to finance this acquisition. This strategic move marks Rocket Lab’s expansion into the satellite payload sector and is slated to close in the second half of 2025. InvestingPro data reveals 13 additional key insights about the company’s financial health and growth prospects.

Geost, with over two decades of experience in both classified and unclassified missions, provides EO/IR sensor systems essential for missile warning, surveillance, reconnaissance, and space domain awareness. These capabilities align with the U.S. Department of Defense’s objectives for resilient space architectures. The integration of Geost’s technologies is expected to enhance Rocket Lab’s ability to deliver integrated space systems for U.S. national security, while reducing integration risks and costs, and expediting delivery timelines.

The acquisition will introduce Optical Systems as a new category in Rocket Lab’s portfolio, positioning the company as a disruptor in the national security space sector. Rocket Lab’s founder and CEO, Sir Peter Beck, emphasized the company’s commitment to providing complete space solutions with advanced payloads for secure and responsive systems at scale.

Geost’s General Manager, Bill Gattle, also highlighted the strategic fit of integrating advanced optical capabilities into Rocket Lab’s offerings. The acquisition includes Geost’s product assets, manufacturing facilities, intellectual property, and inventory. It will also add 115 skilled professionals to Rocket Lab’s workforce, bringing the total employee count to over 2,600 across various locations.

Rocket Lab will conduct a conference call for investors to discuss the acquisition further. The acquisition is expected to strengthen Rocket Lab’s standing as a leading provider of end-to-end space systems, catering to the growing demand for high-performance space solutions. The company has demonstrated strong revenue growth of 65% over the last twelve months, though InvestingPro analysts note the company is not expected to be profitable this year. Discover comprehensive analysis and detailed financial metrics in the Pro Research Report, available exclusively to InvestingPro subscribers.

This press release contains forward-looking statements regarding the anticipated benefits and financial impact of the transaction, integration of the acquired business, and Rocket Lab’s operational and business strategy. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Information for this article is based on a press release statement from Rocket Lab Corporation.

In other recent news, Rocket Lab USA, Inc. completed a significant corporate reorganization, becoming a wholly owned subsidiary under the new holding company, Rocket Lab Corporation. The reorganization, finalized on May 23, 2025, included a tax-free conversion of shares and did not materially alter the company’s operations or leadership. Additionally, Rocket Lab has been selected by NASA to launch the Aspera mission in 2026, aiming to study galaxy formation and cosmic evolution. This mission will utilize Rocket Lab’s Electron rocket, continuing the company’s history of supporting NASA’s science missions.

Rocket Lab also achieved success with two Earth return missions, marking its third successful operation in the W-series of missions for Varda Space Industries. The company’s Pioneer spacecraft played a crucial role in these missions, demonstrating rapid re-entry capabilities. Furthermore, Cantor Fitzgerald recently maintained an Overweight rating on Rocket Lab, with a price target of $29, highlighting the company’s impressive launch history and diversified customer portfolio. The firm also noted Rocket Lab’s progress on the Neutron project, which is on track for its inaugural launch in late 2025.

The company’s contracted backlog, valued at approximately $1.1 billion, includes a balanced mix of commercial and government customers. Cantor Fitzgerald expressed optimism about Rocket Lab’s strategic positioning within the expanding space economy, emphasizing its integrated space systems and launch services. Rocket Lab’s inclusion in the U.S. Space Force’s National Security Space Launch program further solidifies its role in supporting high-priority defense missions.

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