European space giant EADS Astrium has agreed to acquire the University of Surrey spin-out company Surrey Satellite Technology Limited (SSTL).
SSTL has created an international reputation for the design and manufacture of small and micro satellites. The addition of the industrial resources behind Astrium will drive expansion and future development of the UK company.
“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,” said Colin Paynter, CEO of Astrium in the UK.
According to Professor Sir Martin Sweeting, executive chairman of SSTL, the acquisition was 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," said Sweeting.
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.
Professor Christopher Snowden, Vice-Chancellor of the University of Surrey said: “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."
Astrium’s existing space capabilities 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.