Rocket Lab is pushing forward with plans to acquire German optical communications firm Mynaric, a move executives say is crucial to the company’s strategy for expanding into satellite constellations and securing a foothold in the European aerospace market.
During its May 8 earnings call, Rocket Lab leadership shared that the Mynaric acquisition is progressing smoothly and remains on track to close later this year. The deal, announced in March, involves an upfront payment of $75 million, with an additional $75 million tied to future revenue milestones. Completion of the acquisition is contingent upon Mynaric finalizing a restructuring process under German insolvency law, which began in February.
“There’s a couple regulatory processes that you’ve got to get there, but the first is to get through the bankruptcy process,” said Rocket Lab CFO Adam Spice. “Everything seems to be on track.”
Mynaric, which specializes in laser communication terminals for satellites, faced production issues that contributed to its financial struggles. Rocket Lab CEO Peter Beck said his company is confident it can resolve those issues, leveraging its strengths in manufacturing and scalability.
“This is an area where we’re very strong,” Beck noted, emphasizing that the acquisition supports Rocket Lab’s broader strategy of vertical integration—bringing critical supply chain components in-house to reduce reliance on third parties.
The Mynaric acquisition also marks Rocket Lab’s first direct presence in Europe, a strategic move that could open doors to government and institutional contracts typically restricted to European companies. “We’ve been thinking about how we get into Europe for quite some time,” Beck said. “It’s a significant opportunity to expand our addressable market.”
Rocket Lab intends to continue selling Mynaric’s terminals to third-party customers, maintaining its open-market model similar to its other acquired technologies like reaction wheels and solar arrays. At the same time, the technology is seen as a cornerstone for Rocket Lab’s ambitions to build and possibly operate large satellite constellations, enabling high-speed, secure inter-satellite communication.
Spice said the company is actively pursuing several major contracts, both commercial and governmental, that could lead to end-to-end constellation builds—projects that would utilize Rocket Lab’s full capabilities from launch to spacecraft systems.
While Rocket Lab has hinted before at launching its own satellite constellation, details remain scarce. Beck reiterated the company’s long-term goal of becoming a constellation operator but stopped short of announcing a timeline or service scope. “Every milestone and every mission brings us closer to that more lucrative piece of the space value chain,” he said.
Industry observers remain cautious. Andrew Chanin, CEO of ProcureAM and manager of a space-focused ETF that includes Rocket Lab, said that while Rocket Lab has many of the technical capabilities required, it faces fierce competition from major players like SpaceX and Amazon.
“They might have the skills to get satellites into orbit and operate them, but it’s a crowded field,” Chanin said. He suggested the company might be better off waiting until its Neutron rocket enters service and until it achieves financial break-even before committing to a full-scale constellation.
Still, Chanin acknowledged Rocket Lab could carve out a niche, especially among customers seeking alternatives to larger, more dominant providers like SpaceX. “Some companies may prefer Rocket Lab’s more neutral stance,” he said.
The Mynaric deal may not be the last acquisition on Rocket Lab’s roadmap. Spice indicated that the company is exploring multiple opportunities to further enhance its vertical integration. Beck didn’t rule out future deals, including the possibility of acquiring an existing satellite operator. “We look at everything,” he said. “We’re open to much more needle-moving opportunities.”
As Rocket Lab moves ahead with its acquisition strategy and deepens its space systems capabilities, its long-term vision of becoming a leading player in the satellite communications market is beginning to take shape—albeit with many challenges still ahead.
