In April 2025, Mercury Systems, Inc. (NASDAQ: MRCY) signed a fresh production agreement with AeroVironment, Inc. (NASDAQ: AVAV) to scale up the deployment of the BADGER ground communications systems within the U.S. Space Force’s Satellite Communication Augmentation Resource (SCAR) program. Amounting to an expansion of their 2023 collaboration, this deal adds support for two additional BADGER units, reinforcing Mercury’s critical role in advancing resilient satellite communications.
Program Background
SCAR Contract Origin: Awarded in 2022 by the Space Rapid Capabilities Office (RCO), a U.S. Space Force entity focused on rapid development.
BADGER System Description: Developed by AV, BADGER is a deployable, multi-band ground communications platform utilizing agile, reconfigurable beamforming tiles to optimize satellite mission operations.
Development Milestones: AV and the Space RCO have completed development milestones and are on track to deliver the first BADGER system within 2025.
Mercury’s Technological Contribution
Mercury Systems delivers FPGA-based hardware solutions that are essential to BADGER’s next-gen performance:
Core Technologies: Their Quartz RFSoC and Navigator® Design Suite power the signal acquisition and digital beamforming capabilities of BADGER.
Production Timeline: The firm produced hardware for the initial four BADGER systems under a 2023 agreement. The April 2025 extension supports two additional ground systems.
Industry Impact and Strategic Importance
National-Security Significance: The expanded agreement bolsters satellite command-and-control resilience and flexibility, strategic priorities amid intensifying space-domain competition.
Rapid Production Emphasis: The collaboration underscores how both AV and Mercury are accelerating production through advanced supply chain readiness and agile manufacturing techniques.
Mercury’s Market Position: As a provider of mission-critical edge computing solutions deployed across 300+ programs and 35 countries, Mercury continues to assert its leadership in defense-grade communications and processing.
Expert Analysis
Strengths
Advanced Deployment Capability: Integrating beamforming via FGPA technology enhances ground station agility and adaptability—a clear architectural advantage.
Scaling Effectiveness: Mercury’s seamless transition from initial production to added BADGER units illustrates operational scalability.
Strategic Collaboration: This alignment with AV demonstrates synergy between communications hardware and defense systems integration—critical for mission assurance.
Considerations
Operational Risks: Forward-looking statements within Mercury’s public announcement highlight potential risks—including supply chain disruptions, funding challenges, and manufacturing delays—to program schedules.
Geopolitical & Budget Constraints: Ongoing fiscal pressures or shifting strategic priorities could affect long-term support for SCAR.
