On Tuesday, Rocket Lab USA, Inc. ( RKLB ) inked a non-binding term sheet with certain lenders to acquire a controlling stake in Mynaric AG.

Upon execution of a definitive agreement, Rocket Lab would acquire 100% of Mynaric for an initial $75 million, payable in cash or Rocket Lab stock. An additional earn-out of up to $75 million, also in cash or stock, is tied to future revenue targets.

The initial purchase price may increase if the Lenders or affiliates invest more cash in Mynaric post-restructuring, with a corresponding reduction in earn-out potential.

The acquisition is subject to regulatory approvals and the completion of Mynaric’s ongoing StaRUG restructuring under German law. The transaction is expected to close upon fulfillment of these conditions.

The non-binding term sheet grants Rocket Lab an exclusive negotiation period with the Lenders, subject to due diligence and the execution of a definitive purchase agreement.

Rocket Lab’s proposed acquisition of Mynaric is driven by their existing partnership, with Mynaric supplying CONDOR Mk3 optical communication terminals for Rocket Lab's $515 million SDA contract to produce 18 satellites.

Rocket Lab aims to scale production and enhance manufacturing efficiencies to ensure timely, cost-effective terminal deliveries for SDA and other clients.

Read: Rocket Lab Unveils ‘Flatellite:’ Low-Cost, Mass-Producible Satellite To Target Large Constellations Amid Weak Q1 Guidance

Rocket Lab founder and CEO Sir Peter Beck said, ”Mynaric has paved the way in developing laser technology. Their team and technologies will make a compelling addition to our satellite component portfolio and we look forward to making the technology available at scale for our own constellations and those of our customers.”

In a separate release, Rocket Lab filed a prospectus supplement with the SEC for an “at the market” (ATM) offering of up to $500 million in common stock.

The company currently intends to use the net proceeds to fund future growth, including potential acquisitions such as Mynaric and for general corporate and working capital purposes.

Investors can gain exposure to the stock via ARK Space Exploration & Innovation ETF and Tidal ETF Trust II Pinnacle Focused Opportunities ETF

Price Action: RKLB shares are up 1.01% at $18.00 premarket at the last check Wednesday.

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