Sidus Space Inc (NASDAQ:SIDU) said it has acquired Exo-Space, a firm specializing in Edge artificial intelligence (AI) software and hardware for space applications.
The announcement sent the company’s stock soaring, up 30.7% to US$0.21 shortly after the opening bell in New York on Tuesday.
Sidus said the acquisition signals its determination to tap into the growing AI sector and expand its offerings in the Earth and Space Observations services market and solidified its position as a frontrunner in the space technology sector.
It brings to the company California-based Exo-Space’s revenue stream of commercial and government contracts through 2025 as well as a pipeline of potential clients, and is expected to have a positive impact on Sidus’ earnings before interest, taxes, depreciation, and amortization (EBITDA).
Sidus CEO Carol Craig said the accretive acquisition expands the company’s talent, technology, and total addressable market.
“Along with sales contracts and existing AI technology, the transaction includes the acquisition of Exo-Space’s collective experience in AI and machine learning,” she said in a statement.
“This transaction provides the opportunity for us to enhance our presence in the Earth and Space Observations markets by providing actionable solutions for our customers' needs as opposed to just raw data. The integration of Exo-Space EdgeAI technology with Sidus’ sensors provides significant value and transformative potential across various domains.”
Sidus Senior Vice President of Strategy & Special Projects Jared Novick commented: “Exo-Space’s combination of space-hardened hardware and resilient software made this an attractive acquisition in the creation of value to both our customers and shareholders.”
He continued: “The concept of offering customers a special ‘rideshare’ opportunity with a software platform to upload, change, and improve analytics of payloads onboard is a forward-thinking and innovative approach. This idea aligns with the increasing demand for flexibility and customization in satellite missions and data collection.”
Sidus will acquire Exo-Space’s assets for a combination of cash, stock options, and performance bonus incentives.
The company said that it has issued non-qualified stock option awards to purchase an aggregate of 3,955,212 shares of Class A common stock to certain former employees of Exo-Space, granted as inducements material to the new employees becoming employees of Sidus.
The options have an exercise price of $0.16, equal to Sidus stock’s closing price on August 21, 2023, and will vest over a four-year period, subject to the holder’s continued employment at Sidus on the vesting dates.
Sidus Space is a Space Data-as-a-Service satellite company focused on mission-critical hardware manufacturing; multi-disciplinary engineering services; satellite design, production, launch planning, mission operations; and in-orbit support.
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