York Space Systems Inc (NYSE:YSS) saw its shares rise 8.1% in premarket trading on Monday after the company disclosed a definitive agreement to acquire ALL.SPACE, a specialist in satellite communications terminals and multi-network connectivity solutions.
The acquisition represents York's second strategic transaction since it listed on the New York Stock Exchange. Under the terms announced, ALL.SPACE will operate as a wholly owned subsidiary of York once the transaction closes.
ALL.SPACE is the manufacturer of software-defined Hydra Terminal systems. Those terminals are designed to provide connectivity across multiple orbital regimes - Low Earth Orbit (LEO), Medium Earth Orbit (MEO), Geostationary Orbit (GEO) and Highly Elliptical Orbit (HEO) - from a single platform. The company supplies its products to both government and commercial customers.
Financial backing for ALL.SPACE's manufacturing expansion and accelerated delivery timelines was arranged through senior secured debt financing provided by Rochefort Asset Management. The announcement describes Rochefort as a U.S. national security-focused private credit firm licensed under the Department of War's Office of Strategic Capital and the Small Business Administration.
"ALL.SPACE was built to ensure connectivity does not fail when it matters most," said Paul McCarter, CEO of ALL.SPACE. "Demand is accelerating in complex operational environments, and our technology is proven to deliver in those conditions."
The companies said the transaction remains subject to regulatory approvals and customary closing conditions. They expect to complete the deal in the third quarter of 2026.
Following the announcement, Needham analyst Ryan Koontz reiterated a Buy rating and a $33.00 price target on York Space Systems. Koontz noted that in York's second earnings report as a public company, first-quarter 2026 results were mixed versus consensus, with revenue and adjusted EBITDA margin coming in at +6% and -460 basis points relative to expectations. Those margin shortfalls were attributed to estimate-at-completion (EAC) cost overruns on a legacy program.
Management reaffirmed fiscal 2026 guidance, the analyst said, but indicated that second-quarter revenue would be approximately 28% below consensus because of delays from a payload supplier. Management expects the supplier to fully catch up in the second half of 2026. As a result, the anticipated inflection to positive EBITDA is now expected in the third quarter, though management cited a sizable backlog from the Department of War as a supporting factor for a strong second half of the year.
Summary of key transaction details and near-term considerations:
- Definitive agreement to acquire ALL.SPACE; ALL.SPACE to become a wholly owned subsidiary on closing.
- ALL.SPACE's Hydra Terminal systems provide multi-orbit connectivity across LEO, MEO, GEO and HEO from a single platform for government and commercial users.
- Senior secured debt financing for ALL.SPACE's capacity expansion and delivery acceleration provided by Rochefort Asset Management.
- Transaction subject to regulatory approvals and customary closing conditions; expected to close in Q3 2026.