Sidus Space, a leading space technology company, has recently acquired Exo-Space, a California-based firm specializing in Edge artificial intelligence software and hardware for space applications. This strategic move has led to a significant boost in Sidus Space’s shares, with a remarkable 36% increase to 22 cents during premarket trading.
The acquisition of Exo-Space comes with several advantages for Sidus Space. Firstly, Exo-Space currently enjoys a steady revenue stream from its commercial and government contracts, which extends through 2025. Additionally, Exo-Space also boasts a promising pipeline of potential clients, further increasing the growth prospects for Sidus Space.
Notably, this deal is expected to have a positive impact on Sidus Space’s earnings before interest, taxes, depreciation, and amortization (EBITDA). This reinforces the belief that the acquisition of Exo-Space will significantly contribute to Sidus Space’s financial success.
In recognition of the valuable contributions made by former employees of Exo-Space, Sidus Space has issued non-qualified stock option awards to buy 4 million shares of class A stock. These stock options have an exercise price of 16 cents per share and will vest over a 4-year period, contingent upon the employee’s continued employment with Sidus Space. This move serves as an enticing inducement for these former employees to join the Sidus Space team.