McLean, Virginia-based Iridium Communications (Nasdaq: IRDM) has agreed to purchase Satelles for approximately $115 million as part of efforts to expand its portfolio of assured positioning navigation and timing services.
Satelles is a Reston, Virginia-based provider of satellite-based time and location services that work to complement and safeguard GPS and other Global Navigation Satellite Systems-reliant platforms, Iridium said Monday.
Satelles offers the STL or the Satellite Time and Location service, which uses the Iridium satellite constellation’s broadcast paging channels to provide precise timing information while ensuring the security of 5G base stations, data centers, digital and other critical infrastructure against GNSS vulnerabilities.
Iridium expects to close the transaction in the next few weeks and will operate STL as a new business line to be led by Michael O’Connor, CEO of Satelles. By 2030, the new Iridium business segment is expected to generate an annual service revenue of over $100 million.
âAcquiring 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,â said Matt Desch, CEO of Iridium and a 2024 Wash100 awardee.
“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,” the chief executive added.
Iridium already has a 20 percent ownership stake in Satelles through three previous investments and will pay approximately $115 million for the remaining 80 percent.
During its presentation at a conference on Monday, the satellite communications services provider said it expects the transaction to further build up its portfolio with additional government and commercial services that are considered “critical” and expand its relationships with key technology partners.
