SINGAPORE: Singapore Technologies Engineering Ltd (ST Engineering) has announced that its subsidiary Singapore Technologies Engineering (Europe) Ltd, has entered into a conditional share purchase agreement to acquire a 100% ownership in Newtec Group NV (Newtec), an established Belgium-based company in the satellite communications (satcom) industry.
The consideration of €250m (approximately S$383m) on a cash-free and debt-free basis for the proposed acquisition, subject to closing adjustments, is payable in cash.
Satellite communications (satcom) is a fast-growing industry with an expected CAGR of 8% over the next 10 years. The surge of Low Earth Orbit (LEO) constellations will increase bandwidth capacity and reduce operating cost, thereby creating new demand. New use cases, especially to support Smart City applications such as IoT and connected cars, will drive demand for satcom services.
ST Engineering has been growing its satcom business through its U.S.-based iDirect and Singapore-based satcom product and solution business. The Group’s satcom business is an industry leader in the Aeronautical and Maritime segments and has led the industry’s transition to high-throughput satellite (HTS) managed services.
On the other hand, Newtec is a key technology provider in the satellite broadcast segment with unique ultra-high throughput capabilities and a strong presence in the European satcom market. It has a proven range of cost-effective consumer satellite terminals, and industry-leading bandwidth efficiency technology.
“This proposed acquisition expands our satcom business in a meaningful way in an attractive industry that is high-tech and high-growth, driving connectivity advances in a world where 5G and satcom converge,” said Vincent Chong, President & CEO, ST Engineering.
“This coming together of two companies will enable us to move forward together, using our deep-rooted passion for innovation to address our rapidly changing world of connectivity,” said Roald Borré, Chairman of Newtec Board of Directors.[the_ad id=”31605″]