WASHINGTON — BlackSky has acquired full ownership of small satellite maker LeoStella, giving the remote sensing company greater control over the production of its next generation of imaging satellites.

During a conference call on November 7 to discuss its third quarter financial results, BlackSky announced that it had acquired the 50% of LeoStella that it did not already own from Thales Alenia Space, the other joint venture partner. The company did not disclose financial terms of the deal.

The deal closed on November 6, according to BlackSky. 10-Q Filing with the United States Securities and Exchange Commission. “We expect that this acquisition will enable the company to improve its control over the supply chain and production operations of Gen-3,” the company said in the filing, which also did not disclose details financial of the transaction.

Gen-3 is the next generation of imaging satellites that LeoStella is producing for BlackSky. The new satellites promise increased performance in resolution and revisit rate over the company’s existing Gen-2 spacecraft, with additional capabilities such as shortwave infrared imaging and inter-satellite links. The company plans a core constellation of at least a dozen such satellites.

During the earnings conference call, Brian O’Toole, chief executive of BlackSky, said the first Gen-3 satellite was in the “final testing phase”, after which it would be shipped to New Zealand for launch on a Rocket Lab Electron. He did not disclose an expected launch date for the satellite, except that it will take place three to four weeks after it is shipped.

He said acquiring the half of LeoStella that it did not own would improve the production efficiency of future Gen-3 satellites. “To support our Gen-3 production goals, we have taken active steps to further optimize the Gen-3 supply chain and production operations, which includes acquiring our partner’s interest in LeoStella,” he declared.

BlackSky, then part of Spaceflight Industries, announced the creation of the LeoStella joint venture with Thales Alenia Space in 2018 in a $150 million Series C round. LeoStella opened a satellite factory in a Seattle suburb in 2019, this would be used to produce both BlackSky satellites and those of other customers.

Even though LeoStella has won contracts with other companies, like Loft OrbitalAnd sought to enter defense marketsBlackSky was its main client. In an October 24 press release announcing that BlackSky and LeoStella had been jointly selected for a Space Development Agency program that makes them eligible to compete for future experimental satellite missionsLeoStella said it has delivered 23 satellites to date, including 19 in orbit. Most of them would be for BlackSky.

O’Toole was vague about whether LeoStella would continue to sell satellites to third parties now that it is fully owned by BlackSky. “Currently, BlackSky is LeoStella’s largest customer. So we are basically funding this activity through our existing satellite production contracts,” he said. LeoStella, he said, will focus on “scaling Gen-3 and optimizing those production operations.”

In particular, that of LeoStella website now redirects to the BlackSky site, which makes no mention of satellite manufacturing capabilities.

O’Toole said on the conference call that despite Thales Alenia’s buyout of LeoStella’s stake, the two companies would continue to work together. “Our partnership with Thales remains very strong,” he said. “We continue to collaborate around the world to bring Gen-3 capabilities combined with their offerings to market. »

BlackSky reported revenue of $71.7 million in the first nine months of this year, an increase of 22% from the same period in 2023. It said it recorded adjusted earnings before interest , taxes, depreciation and amortization (EBITDA) of $4.3 million during the first nine months of the year, compared to negative adjusted EBITDA of $10.3 million for the same period last year.

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