Firefly is beefing up its national security story, and the stock is soaring

By James Rogers

Firefly's deal to acquire SciTec will bolster its efforts to support President Trump's 'Golden Dome' missile-defense shield

Space company Firefly Aerospace is buying privately held defense technology specialist SciTec in an $855 million deal.

Firefly Aerospace Inc. shares are soaring, lifted by the space company's deal to acquire defense technology specialist SciTec.

The deal is expected to boost Firefly's efforts to support the "Golden Dome" missile-defense shield President Trump announced earlier this year, as privately held SciTec develops remote sensing, missile defense, and command and control systems.

In a statement Sunday, Firefly (FLY) Chief Executive Jason Kim highlighted, in particular, SciTec's defense software analytics and big data processing. These, he said, will bolster Firefly's launch, lunar, and in-space services.

The Trump administration has cited national security as a priority across a number of industries, from rare earths to semiconductors, and defense.

Investors welcomed Firefly's acquisition news, sending shares surging more than 8% in morning trading and putting the stock on pace for its second biggest daily percentage gain since the company's initial public offering in August, Dow Jones Market Data show. The shares have been floundering since the offering and ended Friday's session at $27.37, well below the IPO price of $45.

Firefly's stock is down 51% from its highest close of $60.35 on Aug. 7, the day of the IPO.

Firefly is acquiring Princeton, N.J.-based SciTec for approximately $855 million through a combination of $300 million in cash and $555 million in Firefly shares issued to SciTech owners at a price of $50 per share. The deal is expected to close by the end of 2025.

In a note Sunday, Cantor Fitzgerald analyst Colin Canfield praised the "savvy timing" of the SciTec acquisition, which comes amid "blistering" demand for satellite constellations to support national security. Cantor, which has an overweight rating for Firefly, expects the stock to "materially outperform" Monday following the SciTec deal.

The positive news of the acquisition also soothes what Canfield describes as Firefly's launch "headache." Last month the company hit a setback when the first stage booster for its Alpha 7 rocket was destroyed during ground-based testing at a Firefly facility in Briggs, Texas. The test came just weeks after Firefly received Federal Aviation Administration clearance to resume Alpha rocket launches following an in-flight mishap on an Alpha 6 rocket earlier this year.

The Cedar Park, Texas-based company was thrust into the spotlight earlier this year when it nailed a moon landing, and describes itself as a space and defense company. Speaking during the conference call to discuss Firefly's second-quarter results last month, Kim said that the company is delivering rockets and satellites to perform "the hardest missions in space for national security, exploration, and commercial technology."

-James Rogers

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10-06-25 0958ET