For a company with only one other acquisition under their belt, news came out recently that SpaceX has made their second acquisition; this time acquiring the assets of a parachute company out of bankruptcy. So what does SpaceX want with a parachute company?
Well, it turns out making space-rated parachutes is very hard. SpaceX is known for making everything they use, but when it comes to parachutes they’ve always purchased from a small Florida company Pioneer Aerospace. So when that company’s parent company Aviation Safety Resources (ASR).
And the price tag paid by SpaceX, which was recently valued at a sky high valuation of $150 billion, was a paltry sum of just $2.2 million (yes, you read that correctly – I said million). I mean, that’s just about a rounding error for a company of SpaceX’s size, but because they bought the assets out of bankruptcy they apparently got a pretty good price when apparently no one else was interested.
SpaceX acquires parachute company for $2.2M, because it turns out space-rated parachutes are very hard