Rocket Lab Corporation (RKLB) Advances into Payload Sector with Geost Acquisition

Rocket Lab Corporation (NASDAQ:RKLB) has announced a definitive agreement to acquire Geost, LLC. The $275 million deal comprises $125 million in cash and $150 million in Rocket Lab stock, plus a possible $50 million earnout, and signals the company’s official foray into the payload segment.

A launch pad atop a grassy hill, smoke filled sky from a successful voyage to space.

Geost has more than 20 years of expertise in developing electro-optical and infrared (EO/IR) payloads for missile tracking, tactical ISR, and space domain awareness. These capabilities stand parallel to the U.S. Department of Defense’s objectives for resilient satellite architectures. This includes the Space Development Agency’s Tracking Layer and Golden Dome initiative.

The acquisition, expected to close in the second half of 2025, includes Geost’s IP, manufacturing infrastructure in Arizona and Virginia, and its 115-strong technical workforce. Rocket Lab Corporation (NASDAQ:RKLB) elevates its vertical integration through this acquisition and reduces mission cost and integration risk. It also becomes capable of optimizing delivery timelines for defense clients.

Peter Beck, CEO of Rocket Lab Corporation (NASDAQ:RKLB), made the following comment:

“With the acquisition of Geost, we’re bringing advanced electro-optical and infrared payloads in-house to support secure, responsive, and cost-effective systems at scale.”

The market response before the acquisition has been cautiously optimistic. Goldman Sachs maintained a Neutral stance but increased the price target from $14.35 to $16.00 on May 12. Needham & Company reiterated its Buy rating a day later, raising the target to $28.00, citing the company’s strengthening foothold in the defense sector.

While we acknowledge the potential of RKLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RKLB and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Unstoppable Dividend Stocks to Buy Nowand 11 Oversold Global Stocks to Buy According to Hedge Funds

Disclosure: None.