Denver-based York Space Systems is set to acquire another aerospace company, this time to boost its solar capabilities in space.

York announced on Tuesday it signed an agreement with Arizona-based Solestial, a manufacturing company specializing in producing solar cells at a lower cost than traditional solar products for space.

The Denver aerospace company will buy the solar cell manufacturer for 2.35 million of its shares with the rest paid in cash, according to federal filings. The deal is expected to close in the second quarter of this year.

“Solestial has proven a scalable, space-optimized solar technology that is designed to perform in ways legacy and terrestrial solutions cannot,” Mike Lajczok, chief technology officer of York, said in a news release. “That will give us the ability to build more capable platforms with better performance, lower cost, and greater design flexibility.”

York also said the acquisition will help improve its supply chain in the U.S., reducing its reliance on materials from China. Solestial developed ultra-thin silicon solar cells hardened by radiation with “self-healing silicon technology.” The company claims it’s the only technology of its kind proven in orbit.

About 95% of its supply chain is in the U.S. and has a path toward full domestic production, York stated.

“This acquisition builds on that approach, strengthening our supply chain by investing in a proven U.S. company, supporting the domestic industrial base, and reducing reliance on foreign sources for critical materials and manufacturing,” said York’s CEO Dirk Wallinger.

Solestial’s CEO Margo de Naray said partnering with York will help them scale production, integrate with other technologies and have more reliable manufacturing based in the U.S.

It’s the Denver company’s latest acquisition in a string of deals this year as the aerospace company expands.

Last month, York announced it signed a deal to acquire a U.K.-based satellite communications company All.Space. The company also closed on its acquisition of Michigan-based electric propulsion system manufacturer Orbion Space Technology. Last year, it also acquired Atlas Space Operations, a specialist in ground software for satellite communications as York aims to gain an advantage in the race toward winning Golden Dome contracts.

Lockheed Martin describes the Golden Dome as “a layered defense shield, safeguarding the American homeland with unwavering precision.”

York, which went public at the start of the year, grew its revenue by 9% in the first quarter of 2026 compared to the same period last year to $116 million, according to its latest earnings report.

The company’s operating expenses ballooned in the first three months due to going public, growing its employee headcount and the acquisitions of Atlas and Orbion, said Kevin Messerle, York’s chief financial officer, in an earnings call.

York’s net losses grew by 879% from $11 million in 2025 to $114 million in the first quarter of 2026.

Wallinger told investors last week the company will continue pursuing acquisitions to secure its supply chain and “expand into rapidly growing adjacent markets.”