Redwire acquires QinetiQ Space, accelerating its growth

British defense company QinetiQ Space is selling its Belgian-based commercial satellite systems subsidiary to Redwire, a U.S.-based space infrastructure consolidator. Redwire announced its intention to purchase QinetiQ Space on October 3 for 32 million euros ($31.4 million). QinetiQ Space is a leading provider of tiny satellites and other sensors for European end-to-end space operations. Since purchasing biotechnology startup Techshot in November, Redwire went public to build up a war fund for future mergers. Since then, it has made only a handful of acquisitions totaling about a year. In June 2020, AE Industrial Partners, a private equity group, founded Redwire. Redwire has acquired several businesses to grow its varied space technology business. Made In Space, a manufacturer of spacecraft, and Deployable Space Systems, a company that creates solar arrays and spaceship components, are two examples. Redwire's chair and CEO, Pete Cannito, stated that the company is still interested in acquisitions despite the challenging macroeconomic environment. With China and Russia, we are beginning a multi-decade space race. Cannito informed SpaceNews via email. Because of this, the demand for space capabilities from both US and foreign government participants remains strong, despite a generally declining macroeconomic climate. More struggling businesses may come to the negotiation table in a difficult macroeconomic situation. Space domain awareness, digitally engineered spacecraft, and orbit servicing and manufacturing are among Redwire's strategic priority areas. Redwire merged with Genesis Park Acquisition Corp., a special purpose acquisition firm, in September 2021 to become a publicly traded business to support additional acquisitions. The group hasn't made any other acquisitions since it debuted on the New York Stock Exchange, other than its agreement with Techshot and its plan to acquire QinetiQ Space. Inorganic growth has always been a component of the Redwire approach, according to Cannito. Investors have recently expressed worry over the cash raised and the valuations of space companies, especially those listed on public markets through SPAC mergers, following a spike in investments in the larger space industry over the past few years. The acquisition of QinetiQ Space will increase Redwire's resilience regardless of future macroeconomic uncertainties, according to Cannito, and come at a reasonable valuation. It will also give more revenue diversification, a bigger addressable market, and deeper partnerships with international clients. QinetiQ will prioritize domestic markets For the fiscal year that ended in March, QinetiQ Space in Belgium brought in 49 million euros in sales and had a profit after taxes of three million. For its key goods, which include advanced payloads, small satellite technology, berthing and docking gear, and space instrumentation, the company has a contracted backlog of 113 million euros. Redwire claimed that by purchasing, it will boost its exposure to European clients like the Belgian Science Policy Office and the European Space Agency (BELSPO). Selling the Belgian business, according to QinetiQ, will sharpen its emphasis on its three home nations: the United Kingdom, the United States, and Australia. On October 3, QinetiQ also made plans to acquire Air Affairs, an Australian provider of defense services, for 53 million Australian dollars (about $35 million). In August, QinetiQ announced that it had reached a $590 million agreement to acquire Avantus, a provider of software development, data analytics, and security solutions in the United States.