ST Engineering set to buy Newtec for US$383 million

Singapore Technologies Engineering (ST Engineering), the Singapore-based engineering group operating in the aerospace, electronics, land systems and marine sectors, has agreed to buy Newtec Group NV (Newtec) the Belgium-based satellite communications company (satcom) for US$383 million. With the acquisition of Newtec, the group will be able to add intellectual property, products and market access, meeting demands across the full spectrum of the satcom market.

According to ST Engineering, the combined businesses should be capable of generating: “about US$200 million in value arising from revenue and cost synergies.” Vincent Chong, President & CEO of ST Engineering, commented: “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,” adding that: “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.”

According to ST Engineering, Newtec was among the first companies to test over the air communication via Low Earth Orbit (LEO) satellites. LEO satellites are expected to take off with the launch of 5,000 satellites in the coming years. The aim is to provide fibre quality broadband solutions for the mobility segment, including aeronautical applications (inflight connectivity), maritime broadband, connected cars and smart cities.

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