Codan Ltd. has announced a strategic expansion of its satellite communications business, acquiring Pennsylvania-based Locus Microwave Inc.

Locus is a specialist microwave technology company based in State College PA, primarily focused on the design, manufacture and supply of microwave radio products for satellite communications.

Under Codan’s ownership Locus will remain a US-based business with its design, manufacturing and sales led by the company’s founders and current executive team comprising Jim Dixon, Gary McGovern and Dana Wilt.

The acquisition will enable Codan to establish closer contact with the North American Satellite market with the addition of Locus’ product development and manufacturing base in State College.

Codan’s Managing Director, Mike Heard, said the acquisition will significantly broaden the global reach for the group’s existing extensive international satellite communications business and, in particular, will add exciting new products for Codan’s worldwide customer base.

“This is a strategic investment that positions the company well to capitalise on X-band, a market currently being developed specifically for military and government purposes. This new market offers substantial future opportunities to the Codan Group over the medium to long term,” Heard said.

Growth in the Locus business will come primarily from the deployment of numerous dedicated government X-band satellite communications networks including the Wideband Global Satellite Communications (WGS) satellites.

The Locus X-band products and technologies immediately increase the size of the addressable market available to Codan’s Satellite business. For over 15 years Codan has been a market leader in the supply of similar products operating at C-band and Ku-band which are used in both the commercial and government markets globally.