Expands National Security Mission Capabilities
and Solutions
Advances Value Chain Position with Enhanced
Product Offerings
Redwire Corporation (NYSE: RDW), a leader in space
infrastructure for the next generation space economy, today
announced that it has signed a definitive agreement to acquire Hera
Systems, Inc., a spacecraft developer focused on specialized
missions for national security space customers. With the addition
of Hera Systems’ cutting-edge platform, Redwire expects to
strengthen its spacecraft portfolio and be well-equipped to support
specialized National Security Space missions in geostationary orbit
(GEO).
Founded in 2013, Hera Systems is a privately held company
headquartered in San Jose, California that focuses on developing a
new class of high-performance spacecraft to support the evolving
requirements for national security missions operating in contested
space. Hera Systems’ advanced platform incorporates cyber-secure
communications, resilient power systems, highly accurate pointing,
extensive maneuverability and massive on-board computing power
supporting mission- and payload-specific machine learning. In 2022,
Hera Systems was contracted by Orion Space Solutions to develop
three satellites for U.S. Space Force’s Tetra-5 mission—an on-orbit
servicing demonstration in GEO.
Redwire has significantly increased its national security space
business, recently announcing it was awarded a prime contract to
develop and demonstrate a Very Low Earth Orbit (VLEO) spacecraft
for DARPA’s Otter program. Redwire continues to support the
warfighter as an antenna supplier for the Space Development
Agency’s Transport Layer program dating back to Tranche 0 in
2020.
“Hera Systems’ platform is highly complementary with Redwire’s
suite of national security space solutions,” said Peter Cannito,
Chairman and CEO of Redwire. “Similar to our focus on VLEO
platforms, we see increasing opportunities to unlock and deliver
new solutions in MEO, GEO and other domains to support the
warfighter and address critical needs in National Security Space.
This transaction fits squarely within our growth strategy by adding
significant capabilities to move up the value chain in select areas
of emerging hybrid architectures.”
Hera Systems has experienced profitable topline growth, and for
the year ended December 31, 2023, Hera recorded $15 million of
revenue. Redwire will finance this acquisition with balance sheet
liquidity and expects Hera Systems to add meaningfully to future
growth and profitability. As part of this acquisition, which is
expected to close in the third quarter, Redwire is adjusting its
full-year 2024 guidance from $300 million in revenue to $310
million in revenue.
GH Partners LLC is serving as financial advisor and Hogan
Lovells is serving as legal advisor to Redwire.
About Redwire
Redwire Corporation (NYSE:RDW) is a global space infrastructure
and innovation company enabling civil, commercial, and national
security programs. Redwire’s proven and reliable capabilities
include avionics, sensors, power solutions, critical structures,
mechanisms, radio frequency systems, platforms, missions, and
microgravity payloads. Redwire combines decades of flight heritage
and proven experience with an agile and innovative culture.
Redwire’s approximately 700 employees working from 14 facilities
located throughout the United States and Europe are committed to
building a bold future in space for humanity, pushing the envelope
of discovery and science while creating a better world on Earth.
For more information, please visit redwirespace.com.
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Forward-Looking Statements
Readers are cautioned that the statements contained in this
press release regarding expectations of our performance or other
matters that may affect our business, results of operations, or
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Reform Act of 1995. Such statements are made in reliance on the
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Forward-looking statements are subject to a number of risks and
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are beyond our control.
These factors and circumstances include, but are not limited to:
(1) risks associated with the continued economic uncertainty,
including high inflation, supply chain challenges, labor shortages,
high interest rates, foreign currency exchange volatility, concerns
of economic slowdown or recession and reduced spending or
suspension of investment in new or enhanced projects; (2) the
failure of financial institutions or transactional counterparties;
(3) the Company’s limited operating history and history of losses
to date; (4) the inability to successfully integrate recently
completed and future acquisitions; (5) the development and
continued refinement of many of the Company’s proprietary
technologies, products and service offerings; (6) competition with
new or existing companies; (7) the possibility that the Company’s
expectations and assumptions relating to future results may prove
incorrect; (8) adverse publicity stemming from any incident or
perceived risk involving Redwire or our competitors; (9)
unsatisfactory performance of our products resulting from
challenges in the space environment, extreme space weather events,
or otherwise; (10) the emerging nature of the market for in-space
infrastructure services; (11) inability to realize benefits from
new offerings or the application of our technologies; (12) the
inability to convert orders in backlog into revenue; (13) our
dependence on U.S. government contracts, which are only partially
funded and subject to immediate termination; (14) the fact that we
are subject to stringent U.S. economic sanctions, and trade control
laws and regulations; (15) the need for substantial additional
funding to finance our operations, which may not be available when
we need it, on acceptable terms or at all; (16) the fact that the
issuance and sale of shares of our Series A Convertible Preferred
Stock has reduced the relative voting power of holders of our
common stock and diluted the ownership of holders of our capital
stock; (17) AE Industrial Partners and Bain Capital have
significant influence over us, which could limit your ability to
influence the outcome of key transactions; (18) provisions in our
Certificate of Designation with respect to our Series A Convertible
Preferred Stock may delay or prevent our acquisition by a third
party, which could also reduce the market price of our capital
stock; (19) our Series A Convertible Preferred Stock has rights,
preferences and privileges that are not held by, and are
preferential to, the rights of holders of our other outstanding
capital stock; (20) there may be sales of a substantial amount of
our common stock by our current stockholders, and these sales could
cause the price of our common stock and warrants to fall; (21) the
impact of the issuance of the Series A Convertible Preferred Stock
on the price and market for our common stock; (22) the trading
price of our common stock and warrants is and may continue to be
volatile; (23) risks related to short sellers of our common stock;
(24) inability to report our financial condition or results of
operations accurately or timely as a result of identified material
weaknesses in internal control over financial reporting; and (25)
other risks and uncertainties described in our most recent Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q and those
indicated from time to time in other documents filed or to be filed
with the SEC by the Company.
The forward-looking statements contained in this press release
are based on our current expectations and beliefs concerning future
developments and their potential effects on us. If underlying
assumptions to forward-looking statements prove inaccurate, or if
known or unknown risks or uncertainties materialize, actual results
could vary materially from those anticipated, estimated, or
projected. The forward-looking statements contained in this press
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Company disclaims any intention or obligation, other than imposed
by law, to update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
Persons reading this press release are cautioned not to place undue
reliance on forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20240814849119/en/
Media Contact: Tere Riley tere.riley@redwirespace.com OR
Investors: investorrelations@redwirespace.com
904-425-1431
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