Business

Hot off the press. The deal promises more investment and the financial backing of the larger parent company, whilst preserving SSTL's unique market position and vision in changing the economics of space.

EADS Astrium, Europe’s leading space company, has entered into an agreement to acquire the innovative University of Surrey spin-out company Surrey Satellite Technology Limited (SSTL), which specialises in the design and manufacture of small and micro satellites. This landmark deal provides the financial and industrial resources required for SSTL’s expansion and future development. Completion of the acquisition is subject to obtaining the relevant regulatory approval.

“In the UK we are renowned for our design and manufacture of telecommunications satellites, interplanetary spacecraft and satellite services provision. SSTL is one of the great success stories of the UK space industry and will be a substantial complement to what we can offer customers around the world with its expertise in small and micro satellites and their innovative approach to developing new markets for space,”.

Colin Paynter, CEO of Astrium in the UK.

Professor Sir Martin Sweeting, Executive Chairman of SSTL, has been an active ambassador for the UK space industry for many years and considers the acquisition as essential:

“SSTL operates in a highly competitive global market. If we are to continue changing the economics of space and provide the innovative solutions our customers demand we must expand and maintain our R&D investment. This acquisition strengthens SSTL enormously whilst preserving our unique approach to space.”

You can tune in to a podcast with Sir Martin to hear his personal thoughts on the deal by clicking here.

Professor Christopher Snowden, Vice-Chancellor of the University of Surrey commented:

“This is a great move for both the University and SSTL. On completion, this will represent one of the largest cash spin-outs from any UK university. It will also allow the Company to realise its full potential as a rapidly growing and leading supplier of small and micro satellites, whilst the University retains the benefit of close interaction with SSTL and its new partner EADS Astrium. By retaining a small stake in SSTL the University shows its commitment to both the future of the Company and space research itself.”

SSTL is joining EADS Astrium following a decision by the University of Surrey to sell its majority stake of circa 80% in the small satellite manufacturer. SSTL will remain an independent UK company with its individual brand and unique approach to space following the agreement, whilst benefiting from access to the resources of a large corporation including design, manufacturing and test facilities. Astrium will benefit from enhanced links with the University of Surrey to support staff training and development, also leading to greater cooperation and increased research on space technology and systems.

Astrium is one of the world’s leaders for its expertise in space transportation, spacecraft and satellite services including prime contractor for Ariane 5, the Columbus space laboratory and the Automated Transfer Vehicle for the International Space Station, and its leading-edge large and complex geostationary telecommunications satellites, and the Skynet 5 secure communications system for the UK Ministry of Defence. SSTL will complement Astrium’s existing space capabilities that include space transportation, satellites and services.

Under the share purchase agreement, SSTL will be owned by EADS Astrium NV in the Netherlands. Completion of the transaction remains subject to approval by the relevant merger control authorities.

The agreement sees long-term research collaboration between the University of Surrey and EADS Astrium and will further advance the University’s cutting edge space research capacity. The collaboration will also allow Astrium to benefit from staff training and development opportunities afforded by the links with the University. The sale will support the already-strong presence that Guildford and the south-east have in the aeronautical and space industries, creating a centre of expertise for space technology. This will allow for the region to benefit from the Government’s commitment to invest in the UK space industry.

SSTL and OHB Germany welcome and support the decision on Galileo taken by the European Transport Council approving a proposed change in the tendering rules for the Galileo satellite navigation system that will clear the way for the programme to move forward as a publicly funded project. Within that context, OHB and SSTL have signed an agreement to work together on the Galileo programme. OHB will prime the contract supplying the satellite platforms, with SSTL supplying the payloads.

A full press release may be viewed here

The Brazilian National Institute for Space Research (better know as INPE) has placed a contract for a third year with DMC International Imaging Ltd to acquire high-resolution satellite images of the entire 5 million square kilometres of the Amazon rainforest. Since 2004 INPE’s programme to monitor deforestation has dramatically reduced the rate of logging from 27,000 sq.km. per year to about 10,000 sq.km. in 2007.

In order to rapidly identify areas of cover change, DMCii is contracted to provide three repeat coverages in 2007 (June-July, July-August, September-October). In 2005, and again in 2006, DMC imaged the whole Amazon Basin in 6 weeks to provide Brazil with vital information to help monitor deforestation and combat illegal logging.

DMC imagery is provided by the five-satellite international Disaster Monitoring Constellation (DMC). The DMC small satellites, built by Surrey Satellite Technology Ltd (SSTL), use wide area cameras to capture the high-resolution images. The latest satellite, built for China, was launched into the DMC on 27 October 2005. Two new DMC satellites will be launched in 2008 and a third in 2009.

Speaking at the Royal Society in London, 25th October, Dr. Gilberto Camâra, Director General of INPE said,

“The DMC data is an important affordable contribution to our assessment of deforestation of the Amazon rainforest. The constellation is able to rapidly acquire and deliver high quality imagery so that we have up-to-date information to focus our efforts. It is our intention to develop a long term relationship with DMC”

The increasing amount of DMC imagery required by INPE since 2005 demonstrates the value of rapid revisit imaging. When the new DMC satellites launch in 2008, these will add considerably to INPE’s ability to monitor and combat changes in the rainforest and their consequences for both the local people and the global climate.

The Brazilian National Institute for Space Research (INPE) help Brazilian society to benefit from new developments in space science and technology. This includes increasing Brazil's autonomy in a number of strategic areas, providing the means for Brazilian industry to participate and become competitive in the space area and encouraging the development and dissemination of space technology.

INPE has developed a near or almost real time monitoring application for deforestation detection known as the Real Time Deforestation Monitoring System (DETER) system. High-resolution imagery is needed when estimating the total area of deforestation and when identifying small clearings.

When it's not coordinating the response to natural disasters, DMC International Imaging Ltd (DMCii) supplies remote sensing data products and services for international Earth Observation (EO) markets. DMCii supplies programmed and archived optical satellite imagery provided by the multi-satellite Disaster Monitoring Constellation (DMC). DMC data is now used in a wide variety of commercial and government applications including agriculture, forestry and environmental mapping.

SSTL's Sir Martin Sweeting is giving a talk to the West Surrey Branch of the Institute of Directors (IOD) next Thursday evening, 20th September at the Continuing Education Centre in Guildford. These lectures are open to all IOD members and their guests. An invitation is also extended to the MBA students at the University of Surrey. The programme summarises as follows:

"SSTL is a company that is a disruptive force in the satellite industry and which is 'changing the economics of space'. Leveraging terrestrial commercial-off-the-shelf technologies developed for laptop computers, digital cameras, computer games and mobile phones, SSTL is able to offer rapid-response, low cost yet highly sophisticated microsatellites that have opened up new aspects of space business. Spun out from the University of Surrey in 1985, SSTL continues to work closely with the academic space research centre demonstrating the effectiveness of real commercial and academic synergy. Nevertheless, the company has changed dramatically as it has evolved from 4 staff in 1985 through to 250 staff in 2007 with revenues of £30m. Such organic growth has presented many challenges - and no doubt more are to come."