A Big Week for Space Company Exits

SpaceX’s IPO may have taken wind out of the sails of public space stocks, but the mega listing apparently had no effect on the appetite for corporate dealmaking. This week alone saw three major exits for space companies:

-          Gilat acquiring Comtech’s Satellite and Space business for $158M

-          EQT acquiring Exolaunch; and

-          MDA Space acquiring Blue Canyon Technologies for $620M cash.

That’s not counting “honorable mentions,” like ITT Inc.’s $31M purchase of space and defense component supplier Aerospace Contacts LLC, SpaceX’s previously announced $60B Cursor AI purchase, or Honeywell’s board approval to spin off its Aerospace division – a key supplier of spacecraft components – now expected to close June 29.

As was the case in May and April, hardware companies dominated space-sector M&A (accounting for three of five deals in May and two of three in April, per the Quilty Space Market Monitor). MDA Space in Canada and Israel-based Gilat both made deals with the goal of tapping into the surging U.S. defense market. EQT, of Stockholm, stayed Europe-focused, buying a launch integrator at a time when demand for access to orbit is at a record high.

These transactions are good news for an industry that historically struggled with exits. The early 2020s SPAC boom served as a pressure relief valve, taking around a dozen space companies public and returning cash to investors. As we pass through the middle of the decade, exit strategies have diversified with more M&A and traditional IPOs.

Meanwhile, several buyers have indicated plans to continue acquiring companies. Rocket Lab raised more than $900M to refill its M&A war chest, York Space Systems said it's not slowing down after purchasing three companies this year, and MDA Space continues to scout opportunities in the U.S. and Europe. It’s a good time to be a supplier in the satellite and space ecosystem.