Singapore Technologies Engineering (Europe), a subsidiary of Singapore Technologies Engineering, will pay €250 million to acquire 100 percent ownership of Newtec Group NV, a Belgium company in the satcom industry.
Newtec is a technology provider in the satellite broadcast segment and a strong presence in the European satcom market, with unique ultra-high throughput capabilities. It offers a range of cost-effective consumer satellite terminals and technology providing industry-leading bandwidth efficiency. Newtec was among the first companies to successfully test over-the-air communication via low earth orbit (LEO) satellites, well-positioned for the advent of IP-based satellite broadcast, which is critical for real-time content distribution.
The satcom market is fast growing, with an expected compound average growth rate of eight percent over the next 10 years. The pending launch of LEO constellations will increase bandwidth capacity and reduce operating cost, creating new demands for satellite services and ground terminals. New use cases, especially to support “smart city” applications such as IoT and connected cars, will contribute to the demand for satcom services.
ST Engineering has been growing its satcom business through its U.S.-based iDirect and Singapore-based satcom product and solution business. According to the company, its satcom business is a leader in the aeronautical and maritime segments, leading the industry's transition to high-throughput satellite (HTS) managed services. It is also the technology provider for leading global satellite operators such as Inmarsat, Intelsat and SES. ST Engineering offers a suite of satcom solutions providing seamless global network and bandwidth management with end-to-end integration, addressing the growing needs of enterprise, government, mobility and defense markets.
In 2018, ST Engineering formed a JV company named Jet-Talk with SatixFy UK to develop cost-effective, high performance, flat panel antennas for in-flight connectivity.
The acquisition of Newtec will add intellectual property, products and market access to ST Engineering’s portfolio. The complementary and synergistic result of the acquisition will enable ST Engineering to meet demand across the full spectrum of the market. With enhanced capabilities, ST Engineering can better participate in satellite-based services for smart cities and rural regions:
- Satcom integration in 5G networks, bringing high bandwidth connectivity to remote regions, bridging the digital divide and enabling new applications such as tele-medicine and tele-education.
- Lower data rate applications, such as IoT and M2M connectivity, where millions of devices and telematic sensor points will be connected for surveillance, data gathering and big data analytics.
- End-to-end mobility solutions, enabling seamless internet connectivity and remote monitoring for aeronautical, maritime and connected car applications.
ST Engineering will continue to invest in Newtec and Belgium, positioning it as the group's European center for satcom.
”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. 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." — Vincent Chong, president and CEO, 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. This is an exciting and hugely significant step that simply makes sense for our customers and our staff.” — Roald Borré, chairman of Newtec’s board of directors