The US space industry was poised for a significant shift in 2023, with the United Launch Alliance (ULA) joint venture between Boeing and Lockheed Martin reportedly up for sale. Despite expectations, no deal materialized. As 2024 progressed, ULA remained on the market, with a price tag of around $2-3 billion. This seems like a bargain, considering ULA generated $1.3 billion in sales in 2022 and is expected to increase its launch rate and revenue in the coming years.
With a strong order book, including launches for Amazon’s Project Kuiper, ULA’s value could reach $4-5 billion. It’s surprising that no buyer has stepped forward yet. However, Reuters recently reported that Sierra Space, a subsidiary of private defense company Sierra Nevada Corporation, is now in talks to acquire ULA. This comes as a surprise, as Sierra Space was not considered a contender initially.
Sierra Space, dubbed a “$5 billion space unicorn,” has been involved in various space projects, including developing modules for a private space station and building missile warning satellites for the Pentagon. While the company has expressed interest in going public, it’s unclear if it has the necessary funds to make a significant bid for ULA.
The lack of comment from Sierra Space, Boeing, and Lockheed Martin has sparked skepticism about the deal’s likelihood. Unless Sierra Space conducts an IPO, it may struggle to secure the necessary funds for the acquisition. Despite this, the possibility of Sierra Space buying ULA and then going public could provide space investors with a unique opportunity to invest in a company similar to SpaceX. Only time will tell if this scenario will come to fruition.
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