A&D Weekly News & Transactions - Week 51

Industry Headline News

SDA Awards $3.5B in Tranche 3 Tracking Layer Contracts
Dec. 21, 2025 - The Space Development Agency awarded $3.5 billion in firm, fixed-price contracts to four defense companies to build the Tracking Layer of its Proliferated Warfighter Space Architecture, with each firm responsible for 18 satellites for a total of 72 spacecraft in Tranche 3. Lockheed Martin ($1.1 billion), Rocket Lab ($805 million), Northrop Grumman ($764 million), and L3Harris ($843 million) will deliver space-based infrared sensing satellites designed to provide missile warning and tracking coverage. The awards advance SDA’s multi-tranche deployment strategy, with Tranche 1 and 2 already underway and Tranche 3 launches expected no earlier than 2029. (Payload Space)

Firefly Aerospace, Inc. Inks Agreements With Local Governments
Dec. 21, 2025 - Firefly Aerospace announced it has signed incentive agreements with local governments in North Carolina and Florida to support planned manufacturing expansions. The agreements include tax incentives, workforce training support, and infrastructure investments tied to job creation and facility growth. Firefly said the arrangements are intended to accelerate production of launch vehicles and other aerospace systems. (Yahoo Finance)

GE Aerospace Announces $75 Million Investment in Michigan
Dec. 18, 2025 - GE Aerospace announced a $75 million investment to expand and modernize its Michigan operations, including upgrades to manufacturing and MRO capabilities. The project is expected to support both commercial and defense engine programs while adding jobs and enhancing capacity. GE said the investment reflects sustained demand and a long-term commitment to U.S. industrial infrastructure. (ConstructConnect)

Israel and Germany Expand Arrow Air and Missile Defense System Deal
Dec. 18, 2025 - Israel and Germany signed a $3.1 billion contract to expand Germany’s acquisition of the Arrow-3 air and missile defense system produced by Israel Aerospace Industries, building on a 2023 agreement and bringing the total value of the program to about $6.7 billion, according to Israel’s defence ministry. The expanded deal strengthens Germany’s air defence capabilities against threats such as Russian intermediate-range ballistic missiles and represents the largest defence export deal in Israel’s history. Arrow-3, developed jointly with the U.S. Missile Defense Agency, is designed to intercept long-range ballistic missiles at high altitude and complements lower-tier systems such as Iron Dome. (U.S. News & World Report)

Safran to Sell In-Flight Entertainment Division to Private Equity
Dec. 16, 2025 - Safran has agreed to sell its in-flight entertainment and connectivity unit, Safran Passenger Innovations, to U.S.-based private equity firm Kingswood Capital Management, with the transaction expected to close by the end of the first quarter of 2026. Safran Passenger Innovations, best known for its RAVE IFE platform, generates about $460 million in annual revenue and employs roughly 740 people across sites in the United States and Germany. The divestment reflects Safran’s strategy to streamline its portfolio and focus on core, higher-margin aerospace activities while positioning the IFE business for growth under new ownership. (Aviation Business News)

Weekly Transaction Review

No.	Parties Involved	Transaction Metrics			Location	Segment
	Target [Parent] Acquirer [Parent]	Price ($M)	Price/ Revenue	Price/ EBITDA	Target	Target
1	NextPoint Group Godspeed Capital	-	-	-	Chantilly, VA	Government Services, IT Services and Software
2	Luminar Semiconductor [Luminar Technologies] Quantum Computing	-	-	-	Orlando, FL	Defense Electronics
3	Swift Aerospace Clarendon Specialty Fasteners [Diploma]	-	-	-	Welwyn Garden City, United Kingdom	Distribution
4	Rite-Solutions Arcfield [Veritas Capital]	-	-	-	Middletown, RI	Government Services, IT Services and Software
5	Aero Norway ITP Aero [Bain Capital]	-	-	-	Stavanger, Norway	MRO & Logistics
6	Zone 5 Technologies Kongsberg	-	-	-	San Luis Obispo, CA	Specialty Defense Systems and Services
7	TMMG Artinia Group	-	-	-	Chesapeake, VA	Engineering and Project Management
8	Leap Space ONE Bow River	-	-	-	Lafayette, CO	Satellite, Satellite Services & Space Systems
9	MINT Software Systems Comply365 [Liberty Hall & Insight Partners]	-	-	-	Kiel, Germany	Government Services, IT Services and Software
10	UAS portfolio of Wake Engineering [CPS Grupo] Indra Sistemas	-	-	-	Madrid, Spain	Unmanned Vehicles
11	Innovative Signal Analysis HawkEye 360	-	-	-	Richardson, TX	Government Services, IT Services and Software
12	ATS McNally Capital	-	-	-	Mathis, TX	MRO & Logistics

No.	Target Descriptions
1	NextPoint Group is a provider of AI-enabled software development, cloud modernization, and mission-critical network capabilities for private sector and U.S. federal government intelligence markets. The company's services include application development, devops, software testing, human language technology, data science, mission support, cloud optimization, cyber security, global and specialized networks, and unified and secure team communications.
2	LSI develops chip-scale photonic solutions which enhance LiDAR performance for private sector and U.S. federal government aerospace and defense markets. The company is a collection of four companies in the photonics space which include Optogration, Freedom Photonics, and Black Forest Engineering, combined as a single entity under Luminar.
3	Swift Aerospace is a distributor of aerospace-grade fasteners, engineered components, and consumables serving airlines, MROs, OEMs, and defense customers. The company provides a broad inventory of certified hardware, traceable parts, and supply-chain support to meet regulatory, safety, and operational requirements.
4	Rite-Solutions is a provider of information technology services to private sector and U.S. federal government defense and naval markets. The company's areas of expertise include system of systems (SoS) development & integration, business systems development and sustainment, information technology (it) services and support, open systems architecture integration, structured content management solutions, cloud computing, cloud migration, machine learning, artificial intelligence, cybersecurity, information assurance, and model-based systems engineering.
5	Aero Norway is a provider of aviation services specializing in aircraft maintenance, repair, and overhaul (MRO) as well as leasing and aircraft technical support. The company offers line and base maintenance, component repairs, and comprehensive technical services to support airline operators and aviation partners.
6	Zone 5 is a developer and manufacturer of long range strike and anti-drone missiles for private sector and U.S. federal government aerospace, defense, and missile defense markets. The company offers a range of digitally engineered, low-cost missiles which enable affordable mass and precision strike engagements from mobility, bomber, and tactical aircraft.
7	TMMG is a systems and maintenance engineering company specializing in life cycle asset management, industrial operations support, and program/project management for complex technical environments. The company provides systems engineering, sustainment planning, logistics support, and technical oversight services to government and commercial customers, particularly in maritime, manufacturing, and defense sectors.
8	Leap Space is a developer of rapid-response, mass-producible launch vehicles for private sector and U.S. federal government defense and logistics markets. Leap's proprietary propulsion system combines a high-thrust booster with a high-efficiency upper stage. This moderate-pressure engine design is inherently scalable, providing tailored thrust profiles and performance to meet diverse mission requirements.
9	MINT is a provider of enterprise-grade training and resource management solutions for airlines, aviation organizations, and corporate training providers worldwide. The company's flagship SaaS platform, MINT TMS, supports all types of training programs - from flight crew, cabin crew, ground, and maintenance training to comprehensive corporate and organizational training needs - while fully accommodating AQP, ATQP, EBT, CBTA, and other modern training methodologies.
10	Wake Engineering's UAS portfolio designs, develops, and manufactures flight-proven UAS prototypes equipped with VTOL technology.
11	ISA is a provider of real-time signal and image processing systems for private sector and U.S. federal government aerospace and defense markets. ISA specializes in signal-processing algorithms, payload design, FPGA firmware, and mission-ready systems for demanding environments.
12	ATS is a provider of maintenance, repair, and overhaul solutions for the PT6A turboprop engine family. The company specializes in MRO, on-wing aircraft-on-ground (AOG) field support, and a comprehensive suite of aftermarket solutions, including engine and parts sales, exchange programs, and rental solutions. ATS' repair facilities contain cleaning, inspection, assembly and test stations including NDT, balancing, a full-service machine shop, and an approved and calibrated test cell. ATS is certified to FAA, EASA, and numerous country specific CAA & DGC standards.