Senior professionals from the Harris Williams Aerospace, Defense & Government Services Group recently attended Satellite 2024, a premier event for space industry participants, to meet with the growing landscape of companies and investors involved in the sector. Here, we share key insights on the near-term trends M&A investors should be watching.

Down-to-Earth Opportunities

While some of the space-related opportunities for M&A investors remain in the future, Harris Williams has worked with a range of businesses already participating in the sector. For example, we advised Communications & Power Industries (CPI), a portfolio company of Odyssey Investment Partners, on their sale to TJC. CPI is a leading global designer and manufacturer of proprietary satellite ground station antennas for government and commercial satellite connectivity customers.

Harris Williams also advised Arlington Capital Partners on its acquisition of Stellant Systems, the Electron Devices and Narda West Divisions of L3Harris. Stellant is a market-leading provider of RF amplification products for space, electronic warfare, radar, and other defense technology end-market applications.

“Buyers are actively looking to invest in profitable areas of the supply chain for government space,” says Elliot Cave, a vice president. “They are searching for companies that support multi-year government programs in satellite communications and other national security mission sets, as well as vital suppliers and subcontractors in the broader space supply chain.”

In addition, adds Smith, interest is building for new areas of commercial space: “The next several years will bring a wealth of opportunities for active investors to participate in the significant upside commercial space represents.”

Conclusion

Recent trends are accelerating the development of tangible opportunities for M&A buyers. As governments and commercial entities ramp up their own investments in space, a large and diverse supply chain will continue to see significant growth and maturation, from advanced components intended for use in space to hardware slated for life on Earth, and a host of supporting services. The fast rate of change ensures that M&A investors will continue to see a variety of opportunities to participate in the growth and innovation to come.

To learn more, please contact our senior professionals.