Rocket Lab USA, Inc. (RKLB) saw its stock price surge by 5.01% in Tuesday's trading session, following the announcement of a significant acquisition that expands the company's capabilities in the space industry. The move comes as part of a broader rally in space-related stocks, with Rocket Lab leading the charge.

The primary catalyst for Rocket Lab's stock jump appears to be the company's agreement to acquire Geost, an electro-optical and infrared payload development and manufacturing company, for $275 million. This strategic acquisition marks Rocket Lab's entry into the satellite payload market and positions the company as a more comprehensive provider of national security space solutions. The deal includes $125 million in cash and $150 million in Rocket Lab common stock, with potential additional earnout payments tied to revenue targets.

This acquisition is seen as a significant step for Rocket Lab, broadening its offerings beyond launch and satellite platforms. By integrating Geost's expertise in payload development, Rocket Lab is poised to become an end-to-end provider in the space industry, particularly in the national security sector. The move is likely to strengthen Rocket Lab's competitive position and open up new revenue streams, which investors have responded to positively. The acquisition is expected to close in the second half of 2025, subject to customary closing conditions and regulatory approvals.