Satellite provider York Space is worth more than $1 billion when it sells its stake

Small satellite provider York Space Systems was valued at $1.125 billion in the sale of a majority stake to aerospace-focused private equity firm AE Industrial Partners, a source familiar with the deal said on Tuesday.

AE disclosed the transaction earlier today without providing details. BlackRock Private Equity Partners has agreed to participate in the transaction, the company added.

The source requested anonymity as the terms were confidential. AE Industrial declined to comment further, while York Space did not immediately respond to a request for comment.

York Space, based in Denver, Colorado, supplies small satellites and satellite components to customers, including the US Space Development Agency and several commercial entities.

The company, founded in 2012, has the capacity to produce more than 750 satellites per year.

The deal comes as the United States tests the resistance of its satellites to threats from China and Russia, fearing it will lose its dominance in space. (Reporting by Joey Roulette Washington, DC and Niket Nishant Bengaluru; Editing by Sriraj Kalluvila)