Rocket Lab USA Inc. (RKLB) has received regulatory approval from Germany's Federal Ministry for Economic Affairs and Energy to acquire Mynaric AG, a specialist in optical laser communication technology for satellite networks. The deal, now expected to close in April 2026, triggered a significant stock rally, with RKLB shares rising 5.4% in pre-market trading on March 31 and surging 12% by the end of the day.
The acquisition is a strategic move that solves a critical supply chain issue for Rocket Lab. Mynaric manufactures optical inter-satellite link (OISL) terminals, which are laser-based communication systems essential for satellites to communicate in orbit. By bringing this technology in-house, Rocket Lab removes its dependence on external suppliers for a component central to two major contracts with the U.S. Space Development Agency (SDA), collectively worth approximately $1.3 billion. CEO Sir Peter Beck emphasized the move will enable the company to "make optical terminals available at the volume and pace that commercial and government satellite customers demand across Europe and our existing markets."
Beyond securing its supply chain, the deal establishes Rocket Lab's first operational foothold in Europe. This local presence is crucial for accessing contracts from the European Space Agency (ESA) and European defense procurement, markets previously difficult for U.S. space firms to penetrate. The company's financial position appears robust enough to handle the transaction, holding more cash than debt with a current ratio of 4.08.
Analyst reaction has been positive. Stifel Nicolaus analyst Erik Rasmussen, ranked #137 out of over 12,000 analysts on TipRanks, reiterated his Buy rating and $90 price target on RKLB, implying roughly 40-57% upside from the stock's price around $57.38. The average analyst price target is $89.36. Clear Street also recently initiated coverage with a Buy rating, citing Rocket Lab's vertically integrated model and the growth potential of its Neutron and Electron rocket programs. Rocket Lab's backlog was also bolstered this quarter by a separate $190 million contract for 20 hypersonic test flights with the U.S. Department of Defense, pushing its total launch backlog past 70 missions.
