Sierra Space Eyes Potential Acquisition of United Launch Alliance

Boeing and Lockheed Martin are negotiating to sell United Launch Alliance (ULA) to Sierra Space for $2-3 billion. This shift could redefine the U.S. space launch sector as ULA separates from major defense contractors. The negotiations follow years of speculation and failed divestment attempts.

Boeing and Lockheed Martin are reportedly in discussions to sell their rocket-launch joint venture, United Launch Alliance (ULA), to Sierra Space. Sources familiar with the negotiations estimate the deal could be valued between $2 billion and $3 billion.

The sale of ULA, a key provider of launch services for the U.S. government and a major competitor to Elon Musk's SpaceX, would signal a significant shift in the U.S. space launch industry. The move would see ULA transition from being part of two of the largest defense contractors to a smaller, privately-held company. This potential sale follows years of speculation about ULA's future, including unsuccessful divestment attempts in 2019.

Despite the ongoing discussions, sources caution that the deal is not finalized. Jeff Bezos' Blue Origin and Cerberus Capital Management reportedly placed bids in early 2023, and Rocket Lab showed interest, but no agreement was reached. Analysts believe that acquiring ULA could accelerate Sierra Space's crewed spaceflight ambitions by providing in-house access to launch vehicles, thereby reducing costs.

(With inputs from agencies.)