In a May 8 earnings call to discuss the company’s first quarter financial results, Rocket Lab executives said work to close its latest deal, the acquisition of optical communications terminal supplier Mynaric, was “progressing well” towards closing it later this year.

Rocket Lab announced March 11 its agreement to acquire Mynaric for an initial $75 million plus up to $75 million in additional payments tied to revenue targets. The deal depends on Mynaric completing a restructuring process under German law that started in February and is ongoing.

Mynaric ran into financial problems that triggered the restructuring because of problems producing its laser terminals, which Rocket Lab believes it can correct. “The biggest issue is just production, and that’s an area where we’re very, very strong in,” said Peter Beck, chief executive of Rocket Lab.

The acquisition, he noted, would give Rocket Lab its first presence in Europe. “We’ve been thinking about how we get into Europe for quite some time,” he said. Winning orders from European government agencies is difficult for companies outside Europe. “It’s an exciting [total addressable market] expansion opportunity for us because it’s typically very, very difficult to get involved with these larger European programs unless you have a footprint there.”