Iridium is to acquire Satelles, a provider of satellite-based time and location services that complement and protect GPS and other GNSS-reliant systems for US$115 million.
Satelle’s Satellite Time and Location (STL), is an easy-to-adopt, highly secure solution that increases the efficiency and reliability of timing systems for digital infrastructure like 5G base stations, data centers, and other critical infrastructure and protects against GNSS vulnerabilities using low-cost hardware that doesn't require outdoor antennas.
According to voice and data satellite communications company Iridium the market for assured Positioning Navigation and Timing (PNT) services is estimated to reach US$3.5 billion in 2032. It is also evolving to require integrated small-form-factor devices instead of the server rack-size solutions connected to outdoor GPS antennas that are available today.
Iridium is to reduce the size and cost barriers to adoption, enabling deployment of a more accessible solution for integration with autonomous systems, consumer devices, vehicles and traditional markets like aviation, maritime and land mobile. The acquisition will also provide an opportunity for Iridium's existing partner eco-system to add to their portfolio of solutions and harden their GNSS-reliant products and infrastructure.
Iridium CEO, Matt Desch said, "This market is growing. It's a perfect application of our network, and this solution solves a problem for critical industries better than anything else.
"Acquiring Satelles makes perfect sense for Iridium and is consistent with what our strategy has always been, which is to take advantage of our unique network to do what others can't or do it better than anyone else can. STL is the superior solution available today, and we have been following and investing in Satelles's technology roadmap to allow us to create even more opportunity. We're excited to formally bring the Satelles team "in-house," to the Iridium family."
The STL service uses the stronger broadcast paging channels of the Iridium satellite constellation to deliver precise timing information, which provides truly global, secure time and location signals that are 1,000 times more powerful than GNSS constellations. The service is resilient to regional GNSS outages, works inside buildings and is being used today to secure digital infrastructure for financial markets, governments, and major corporations.
STL will become a new business line of Iridium, led by Satelles CEO, Michael O'Connor who will report to Iridium CEO, Matt Desch.
"Bringing STL into the Iridium family is going to be a supercharger for this capability that will benefit our customers and our society. I look forward to a bright future together," said O'Connor.
Iridium is assuming all rights to the Satelles patent portfolio and anticipates the Iridium STL line of business will generate over $100 million in service revenue per year, by 2030, and additional revenue from equipment and engineering.
Iridium already had an ownership stake of around 20% in Satelles from three previous investments. For the remaining approximately 80%, Iridium will pay about $115 million.
The acquisition is expected to complete in the next few weeks and will be the first acquisition of another company in Iridium's history.