Firefly Stock Jumps on Acquisition News. It’s a Move Beyond Hardware.

Firefly aims to offer end-to-end solutions, spanning launch, lunar landing, and orbital technologies. Above, part of a Firefly rocket is shown in Briggs, Texas. (Courtesy Firefly)

Key Points

• FireFly Aerospace’s stock rose 9.2% after the company announced the acquisition of SciTec, a military technology provider.
• The acquisition, valued at $300 million in cash and $550 million in stock, is meant to broaden Firefly’s capabilities.
• SciTec, with nearly 500 employees, generated $164 million in sales over the past 12 months.

Shares of space technology provider Firefly Aerospace rose early Monday after the company disclosed a deal to purchase SciTec, a provider of military technology.

Firefly stock rose 6.3% on Monday, closing at $29.09, while the S&P 500 gained 0.4%. The Dow Jones Industrial Average lost 0.1%.

“The acquisition of SciTec enhances our ability to support a growing number of defense missions and provides us with a significant operational advantage,” said Firefly CEO Jason Kim in a news release. “SciTec’s mission-proven software and big data processing capabilities provide warfighters with rapid, accurate information to enable informed decisions.”

SciTec’s technology will improve Firefly’s ability to offer integrated, software-based solutions for national-security programs such as Golden Dome, Kim said. The Golden Dome is the nationwide missile defense shield proposed by President Donald Trump.

The deal will be funded with $300 million in cash and $550 million in stock. The stock, notably, is priced at $50 a share, well above recent levels. SciTec has almost 500 employees and generated $164 million in sales over the past 12 months.

This adds a “software layer to [Firefly] hardware,” wrote Jefferies analyst Sheila Kahyaoglu in a Monday report. She rates shares at Buy, with a price target of $60.

The jump comes after a volatile period for shares of the space technology company, which aims to offer end-to-end solutions, spanning launch, lunar landing, and orbital technologies. Its Blue Ghost lunar lander successfully landed and operated on the moon in March.

The company completed an initial public offering in August, selling stock at $45. Shares traded as high as $73.80 before falling back. The stock dropped 21% on Sept. 30 after a company rocket exploded during testing.

Testing and operating space technology is hard. The latest deal should open new areas for Firefly to make gains.

Write to Al Root at allen.root@dowjones.com