WASHINGTON — Rocket Lab, a publicly traded aerospace manufacturer and launch services provider, is expanding deeper into the defense sector with the acquisition of Geost, a supplier of electro-optical and infrared (EO/IR) sensor payloads used in U.S. military satellites.
In a deal announced May 27, Rocket Lab is acquiring Geost from the private equity firm ATL Partners for $125 million in cash and $150 million in stock, with an additional $50 million in potential cash payments tied to revenue targets in 2026 and 2027.
The acquisition gives Rocket Lab access to satellite sensor technology used by the U.S. Department of Defense for missile warning systems and space surveillance — capabilities that could help it win lucrative Pentagon contracts.
“The acquisition of Geost will bring on board critical technology and payloads that are relied upon by the Department of Defense,” said Rocket Lab’s chief executive Peter Beck.
The deal boosts Rocket Lab’s ambitions to become a prime contractor in Pentagon satellite programs. With Geost’s EO/IR payloads in-house, Rocket Lab aims to compete for next-generation military satellite contracts, particularly in the Space Development Agency’s (SDA) Proliferated Warfighter Space Architecture (PWSA) program and the Golden Dome missile defense shield.
Rocket Lab already holds a $515 million contract to produce and operate 18 data-relay satellites for the SDA’s Transport Layer. The Geost acquisition would strengthen its bid for the SDA’s upcoming Tranche 3 Tracking Layer procurement — a contract expected to involve over 50 satellites equipped with advanced missile tracking sensors.
“It really is a logical addition to a vertically integrated national security offering,” Beck said.
Rocket Lab’s chief financial officer Adam Spice said integrating Geost’s payload capabilities gives the company a competitive edge in capturing future defense work. “This also positions us to be a competitive provider for the Golden Dome missile defense system,” he said.
The Golden Dome project — directed by President Trump in an executive order — seeks to build a space-based missile defense shield over the next three years with an estimated budget of $175 million. The system is expected to rely heavily on commercial space firms capable of rapid deployment and cost efficiency.
“The President’s recent announcement made it clear that there’s a strong emphasis on utilizing efficient and fast providers, which positions us well to capture these opportunities,” said Spice.
Vertical integration
Founded in 2006 and headquartered in Long Beach, California, Rocket Lab has built a reputation for vertically integrating its space systems. The company has pursued acquisitions to bring more hardware production in-house, including a planned acquisition of optical communications terminal provider Mynaric.
Geost, based in Tucson, Ariz., with additional facilities in northern Virginia, employs 115 staff. Those employees will join Rocket Lab’s expanding global workforce, which will grow to over 2,600 across its locations in California, Virginia, Colorado, Maryland, New Mexico, Toronto, New Zealand, and now Arizona.
Rocket Lab is acquiring Geost from private equity firm ATL Partners, which bought the company in 2021. In 2023, Geost was folded into LightRidge Solutions, an ATL portfolio company. Following the sale, ATL will reorganize the remaining units — Trident Systems and Ophir Corporation — into a new defense electronics holding company named Trident Solutions.
