By Stephen Nakrosis

Rocket Lab USA said it intends to acquire Mynaric, provider of laser communications, and entered into a non-binding term sheet with certain lenders.

The deal is expected to close following completion of Mynaric's previously announced restructuring proceedings under German law. The completion of the restructuring process will see certain outstanding debt held by lenders being converted into equity of Mynaric, according to Rocket Lab.

Under the terms of the planned acquisition, once the restructuring is completed, Rocket Lab would acquire 100% of the outstanding equity interests of Mynaric at an initial purchase price of $75 million. The deal also includes the potential for additional earn-out consideration based on future revenue targets of up to an additional $75 million. Rocket Lab said the initial cost represents a fraction of the over $300 million invested in Mynaric to date.

A key driver for this planned acquisition is the fact Mynaric is already a subcontractor to Rocket Lab, the company added.

According to Rocket Lab, laser communication products aren't readily available in high volumes at an affordable price. Rocket Lab said it proved through previous acquisitions it can take satellite subsystems and components previously only available in subscale quantities with long lead times and make them affordable and available at scale, adding it intends to do the same with Mynaric's optical terminals.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

March 11, 2025 18:27 ET (22:27 GMT)

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