Sidus
acquires Exo-Space
August 22, 2023
Sidus Space
announces its strategic acquisition of
Exo-Space, a cutting-edge
California-based firm specializing in
Edge Artificial Intelligence (AI)
software and hardware for space
applications. This transaction signals
Sidus's determination to tap into the
growing AI sector and expand its
offerings in the Earth and Space
Observations services market.
Pursuant to the
terms of the acquisition agreement Sidus
has acquired Exo-Space's assets in a
combination of cash, stock options, and
performance bonus incentives in
alignment with Sidus’ growth into an
AI-enabled space services company.
Exo-Space brings a current revenue
stream of commercial and government
contracts extending through 2025, as
well as a pipeline of potential clients.
The deal is projected to have a positive
impact on Sidus's earnings before
interest, taxes, depreciation, and
amortization (EBITDA).
“This accretive
acquisition expands our talent,
technology, and total addressable
market. Along with sales contracts and
existing AI technology, the transaction
includes the acquisition of Exo-Space’s
collective experience in AI and machine
learning.” said Carol Craig, Founder and
CEO of Sidus Space. “This transaction
provides the opportunity for us to
enhance our presence in the Earth and
Space Observations markets by providing
actionable solutions for our customers'
needs as opposed to just raw data. The
integration of Exo-Space EdgeAI
technology with Sidus’ sensors provides
significant value and transformative
potential across various domains.”
Exo-Space occupies
a unique niche in the realm of U.S.
owned Edge AI computing, concentrating
on both software and hardware solutions
for space assets that utilize faster
processing speeds. Exo-Space’s current
operations complement Sidus’ established
U.S. DoD/Intelligence relationships.
Jared Novick,
Senior Vice President of Strategy &
Special Projects, added, “Exo-Space’s
combination of space hardened hardware
and resilient software made this an
attractive acquisition in creation of
value to both our customers and
shareholders.” He also added, “The
concept of offering customers a special
"rideshare" opportunity with a software
platform to upload, change, and improve
analytics of payloads onboard is a
forward-thinking and innovative
approach. This idea aligns with the
increasing demand for flexibility and
customization in satellite missions and
data collection.”
Sidus believes the
acquisition of Exo-Space will seamlessly
integrate stand-alone AI and machine
learning products into Sidus' business
lines, with the ability to market the
hardware for third-party purchase. A
distinguishing feature of Exo-Space's
solution is its adaptability, designed
to smoothly integrate the latest
processor advancements. Proprietary
hardware-agnostic software allows this
flexibility. The synergy between Sidus’
satellite constellation, Edge Computing,
and AI platform is expected to deliver
substantial enhancements in leveraging
space-based data.
Jeremy Allam, Chief
Executive Officer of Exo-Space,
commented, “By joining the Sidus team
and integrating our AI capabilities into
LizzieSat, we can now better deliver the
benefits of space-based AI to more
customers and on a shorter timeline than
was previously possible.”
Sidus believes this
strategic acquisition solidifies Sidus
Space's position as a frontrunner in the
space technology sector, poised to
leverage AI advancements to
revolutionize the acquisition and
utilization of space-derived data.
Sidus has issued
non-qualified stock option awards to
purchase an aggregate of 3,955,212
shares of Class A common stock to
certain former employees of Exo-Space.
The stock options were granted as
inducements material to the new
employees becoming employees of Sidus in
accordance with Nasdaq Listing Rule
5635(c)(4). The options have an exercise
price of $0.16 per share, which is equal
to the closing price of Sidus’ Class A
common stock on August 21, 2023. Each
option will vest over a 4-year period,
subject to the employee’s continued
employment with Sidus on such vesting
dates. Notwithstanding the foregoing
vesting conditions, no portion of the
options shall be exercisable prior to
the second (2nd) anniversary of the date
of grant.