ST Engineering has acquired Newtec Group NV for €250 million to enhance its satellite communication capabilities and market offerings.

Target Information

ST Engineering, formally known as Singapore Technologies Engineering Limited, has made a significant acquisition by purchasing the Newtec Group NV, a prominent company specializing in high-throughput satellite communication technologies. Newtec is renowned for its innovative products and services in satellite broadband, mobility, and video distribution, which positions it as a leader in its sector. This acquisition is strategically aligned with ST Engineering’s objective to enhance its offerings for satellite network operators, service providers, and both commercial and government users.

The total purchase price for this transaction is €250 million, structured on a cash-free and debt-free basis, while also being subject to adjustments upon closing based on net debt, debt-like items, and net working capital. The deal is expected to receive customary regulatory approvals and is anticipated to complete in the latter half of 2019.

Industry Overview

The satellite communication industry has been experiencing transformative advancements, particularly in the realms of high-speed connectivity and broadband services. In recent years, the demand for satellite-based solutions has surged, d