M&A News: Rocket Lab (RKLB) Acquires Payload Specialist Geost for $275M

Rocket Lab (RKLB) is building a presence in the satellite payload market with its $275 million acquisition of Geost, a developer of electro-optical and infrared (EO/IR) sensor systems and high-priority national security satellites. Following the news, RKLB stock surged over 13% in yesterday’s trading session and another 4% in after-hours trading.

According to the terms, the purchase price includes $125 million in cash, $150 million in privately placed Rocket Lab stock, and another $50 million in cash earnout payments contingent on achieving revenue targets.

The acquisition includes Geost’s product portfolio, manufacturing facilities, intellectual property, and inventory. Further, it will add Geost’s 115 skilled employees to Rocket Lab’s team. The deal is expected to close in the second half of 2025.

How RKLB Gains from this Acquisition

Geost makes high-tech sensors for tracking missiles, spying, and defense. These tools help with U.S. military projects, such as the Golden Dome missile defense and the Space Development Agency’s satellite system.

By acquiring Geost, Rocket Lab looks to strengthen its capabilities, lower costs, reduce integration risks, and speed up spacecraft production. The deal also expands RKLB’s portfolio, adding optical systems to its existing launch and satellite manufacturing capabilities.

Moreover, with this deal, Rocket Lab is eyeing future defense contracts, including the Space Development Agency’s Tranche 3 procurement, which involves more than 50 missile tracking and defense satellites.

Is RKLB a Good Stock to Buy?

Turning to Wall Street, RKLB stock has a Moderate Buy consensus rating based on nine Buys and four Holds assigned in the last three months. At $28.55, the average Rocket Lab price target implies a 0.73% downside potential. Shares of the company have gained 40.4% over the past three months.

See more RKLB analyst ratings