MCLEAN, Va. - Iridium Communications Inc. (NASDAQ: NASDAQ:IRDM) announced today its acquisition of Satelles, Inc., a company specializing in secure satellite-based time and location services. This move aims to enhance Iridium's Positioning, Navigation, and Timing (PNT) offerings by integrating Satelles's Satellite Time and Location (STL) service into its global network.
The STL service is designed to complement and protect GPS and other Global Navigation Satellite Systems (GNSS), offering a secure solution that can be easily adopted by various industries relying on precise timing systems. The acquisition is part of Iridium's ongoing investment in technologies that leverage its unique satellite network capabilities.
The market for assured PNT services is expected to grow to $3.5 billion by 2032, with the demand for integrated small-form-factor devices on the rise. Iridium's acquisition of Satelles is a strategic move to tap into this market by providing an alternative to traditional server rack-sized solutions that require outdoor GPS antennas.
Iridium CEO Matt Desch stated that the acquisition aligns with the company's strategy to deliver superior solutions through its network. He expressed confidence that STL is the best available solution and will create more opportunities for Iridium and its partners.
The STL service benefits from the robust broadcast paging channels of the Iridium satellite constellation, delivering signals that are 1,000 times more powerful than GNSS constellations. It has applications across various sectors, including financial markets, government, and corporate digital infrastructure.
Following the acquisition, Satelles CEO Dr. Michael O'Connor will lead the new business line under Iridium, aiming to drive growth and deliver benefits to customers and society. Iridium anticipates the STL service to generate over $100 million in annual service revenue by 2030, with additional income from equipment and engineering.
Iridium financed the acquisition of the remaining approximately 80 percent of Satelles for about $115 million, net of cash, through a term loan. The transaction, which marks Iridium's first acquisition of another company, is expected to close in the coming weeks.
This announcement comes as Iridium is set to present at the Raymond James Annual Institutional Investors Conference today, with further details to be discussed at the event and in the company's first-quarter earnings call in April.
The information in this article is based on a press release statement from Iridium Communications Inc.
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