United Launch Alliance Sale: According to sources familiar with the talks, Boeing and Lockheed Martin are negotiating the sale of their joint venture, United Launch Alliance (ULA), to Sierra Space. The potential deal could value ULA at between $2 billion and $3 billion, marking a significant shift in the U.S. space launch industry.
If completed, the sale would separate ULA from two of the largest defense contractors, placing it under a smaller, private company. This comes after years of speculation about ULA’s future and previous unsuccessful attempts to divest from the joint venture. In 2019, Boeing and Lockheed explored the possibility of selling ULA, but were unable to reach an agreement with potential buyers.
While negotiations are ongoing, some sources indicate they could end without a definitive agreement. ULA has directed inquiries to Boeing and Lockheed, which have declined to comment on market speculation. Sierra Space has not yet responded to requests for comment.
In early 2023, other companies including Jeff Bezos’ Blue Origin and Cerberus Capital Management expressed interest in acquiring ULA, but those talks did not lead to a deal. Rocket Lab also expressed interest but was not immediately available for comment.
Acquisition, a bold move
Acquiring ULA would represent a bold move for Sierra Space, which was spun off from Sierra Nevada Corporation in 2021. The company aims to bring its long-awaited Dream Chaser space plane to market and is developing a private space station in collaboration with Blue Origin. Analysts suggest a deal could accelerate Sierra Space’s human spaceflight initiatives by providing internal access to launch vehicles, reducing reliance on external launches.
For Boeing, the potential sale of ULA aligns with a strategic shift under new CEO Kelly Ortberg, who took over in August. Divesting ULA would allow Boeing to focus on its core aerospace and defense sectors while still generating cash from the sale.
ULA was created in 2006 to consolidate the competing rocket businesses of Boeing and Lockheed and cement its control over U.S. government launch services. But ULA has faced challenges ramping up production of its new Vulcan rocket, set to debut in 2023, amid growing competition from SpaceX and its reusable Falcon 9 rocket.
(With contributions from Reuters)
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