Iridium Enters Agreement To Acquire Satelles; To Pay About $115M For Remaining ~80% Stake In Satelles
Portfolio Pulse from Benzinga Newsdesk
Iridium Communications Inc. has announced an agreement to acquire the remaining approximately 80% stake in Satelles for about $115 million. This acquisition will introduce Satellite Time and Location as a new business line for Iridium, led by Satelles CEO Dr. Michael O'Connor. Iridium, which already owned about 20% of Satelles from previous investments, will assume all rights to Satelles' patent portfolio. The company expects the Iridium STL business to generate over $100 million in service revenue annually by 2030, in addition to revenue from equipment and engineering. The acquisition will be financed through an addition to Iridium's term loan.
March 04, 2024 | 12:11 pm
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Iridium Communications Inc. is set to acquire an approximately 80% stake in Satelles for about $115 million, introducing a new business line expected to generate significant revenue.
The acquisition of Satelles by Iridium Communications Inc. is a strategic move that significantly expands its business scope and potential for revenue growth, especially with the anticipated generation of over $100 million in service revenue annually by 2030 from the new Satellite Time and Location business line. This move is likely to be viewed positively by investors, given the clear path to revenue growth and the strategic expansion of Iridium's patent portfolio and service offerings. The financing of the acquisition through a term loan addition suggests a manageable financial impact on Iridium.
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