Why Is Firefly Aerospace Stock Rocketing Premarket Today?

Firefly Aerospace (FLY) stock jumped nearly 17% in premarket trading on Monday after the company agreed to buy defense technology player SciTec International for $855 million in a cash and stock deal.

According to the deal terms, Firefly will pay SciTec shareholders $300 million in cash and $555 million in Firefly shares at a price of $50 apiece.

“SciTec’s mission-proven software and big data processing capabilities provide warfighters with rapid, accurate information to enable informed decisions that protect our homeland from emerging threats,” said Jason Kim, CEO of Firefly Aerospace. “These capabilities significantly enhance our ability to deliver integrated, software-defined solutions for critical national security imperatives, particularly Golden Dome.”

Several defense firms are eyeing a share of the lucrative Golden Dome project, a missile defense system floated by the Trump administration, estimated to cost $175 billion. Other nations, including NATO allies of the U.S, are also ramping up spending on defense amid heightened geopolitical uncertainties.

The deal is expected to close by the end of the year. SciTec generated revenue of approximately $164 million for the twelve-month period ended June 30, 2025, and holds contracts with the intelligence community, defense and national security agencies, and commercial customers.

“SciTec’s core capabilities – which include missile warning, tracking and defense, intelligence, surveillance and reconnaissance, space domain awareness, and autonomous command and control – will supplement Firefly’s launch, lunar, and in-space services,” the companies said.

Firefly stock has slumped over 60% since its initial listing in August. Last week, the firm’s Alpha rocket exploded during a prelaunch trial, raising another question mark over the company’s launch cadence at a time when competitors are vying to cut Elon Musk-headed SpaceX’s dominance in the aerospace industry.

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