Singapore Technologies Engineering Ltd (ST Engineering) has purchased the Belgian satcom equipment vendor Newtec in a €250 million all cash transaction.
In a statement, ST Engineering said a surge in Low Earth Orbit (LEO) constellations would boost demand through increased bandwidth capacity and reduced operating costs.
“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. “It aligns with our strategy to invest in businesses that help accelerate our growth trajectory, especially in Smart City, to deliver long-term shareholder value.”
ST Engineering has been growing its own satcom business through its US based iDirect and Singapore-based satcom product and solution businesses. Already, the firm is the technology provider for satellite operators Inmarsat, Intelsat and SES.
“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’s Board of Directors. “This is an exciting and hugely significant step that simply makes sense for our customers and our staff.”
Recently, Newtec was among the first companies to successfully test over-the-air communication via LEO satellites.
