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ST Engineering to acquire Newtec for €250 million

Singapore Technologies Engineering says that its subsidiary Singapore Technologies Engineering (Europe) Ltd, has entered into a conditional share purchase agreement to acquire a 100% ownership of established Belgium-based satcom company Newtec Group NV.

The consideration of EUR 250 million on a cash-free and debt-free basis for the proposed acquisition, subject to closing adjustments, is payable in cash. Satcom is a fast-growing industry, the surge of Low Earth Orbit (LEO) constellations will increase bandwidth capacity and reduce operating cost, thereby creating new demand. New use cases, especially to support Smart City applications such as IoT and connected cars, will drive demand for satcom services. ST Engineering has been growing its satcom business through its US-based iDirect and Singapore-based satcom product and solution business. In 2018, ST Engineering formed a JV company named Jet-Talk Limited, with SatixFy UK Limited to develop cost-effective, high-performance flat panel antenna to address the growing demand for in-flight connectivity. On the other hand, Newtec is a key technology provider in the satellite broadcast segment with ultra-high throughput capabilities and a strong presence in the European satcom market. Recently, Newtec was among the first companies to successfully test over-the-air communication via LEO satellites. LEO satellites are expected to take off with the launch of more than 5’000 satellites in the coming years. The company is also well placed to leverage the advent of IP-based satellite broadcast which is critical for real-time content distribution. The proposed acquisition of Newtec will add intellectual property, products and market access. ST Engineering will continue to invest in Newtec in Belgium to position it to be the Group’s European centre for the satcom business. “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,” says Vincent Chong, President & CEO, ST Engineering, in a press release. “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.” “We are pleased to be able to acquire Newtec, an established satcom player with strong technology foundations. The differentiated yet complementary technologies, combined with our track record and established satcom experience, will enable us to innovate and deliver more value-added, advanced satellite products and capabilities to our customers, at a more rapid pace,” said Ravinder Singh, President, Electronics sector, ST Engineering. “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,” adds Roald Borré, Chairman of Newtec Board of Directors. “This is an exciting and hugely significant step that simply makes sense for our customers and our staff.”
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April 20 2019 11:13 am V13.1.0-2