Spacedev Inc. will acquire Starsys Research Corp. for $9 million in cash and stock, the companies announced Oct. 26.

SpaceDev will pay $1.5 million in cash and $7.5 million in Spacedev common stock for Starsys, as well as paying off $4.6 million of Starsys debt and forgiving a $1.2 million loan to Starsys. SpaceDev also will contribute at least $2.5 million to Starsys’ working capital through the end of 2006.

Starsys shareholders may receive additional compensation of up to $1 million in cash and $18 million in Spacedev stock depending on Starsys’ financial performance through 2007.

Starsys will operate as a wholly owned subsidiary of Spacedev, with Starsys CEO Scott Tibbitts expected to become a director and executive officer of SpaceDev. Robert Vacek is expected to remain president of Starsys.