Space Industry Braces for Surge in Mergers and Acquisitions in 2025

Merger and acquisition (M&A) activity in the space sector is expected to increase significantly in 2025, following delays in 2024 deal closures. Tyler Letarte of AE Industrial Partners cited delayed government contracts and high interest rates as key factors behind the backlog of pending deals. Hoyt Davidson of Near Earth noted that anticipated U.S. defense spending and commercial space sector growth are fueling renewed acquisition interest. Despite uncertainties in defense budgets, Chris Quilty of Quilty Space expects M&A activity to rise, particularly as regulatory changes unfold following the departure of FTC Chair Lina Khan. The anticipated boom could make 2025 one of the busiest years for space industry M&A in recent history.

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