Space Deal Links UK And European Leaders

Under what is described as a “landmark deal,” Europe’s leading space group, EADS Astrium, is to take over SSTL ((Surrey Satellite Technology Ltd), the Surrey University spin-out firm that has pioneered the design and manufacture of small, low-cost satellites.

Astrium and Surrey Satellite Technology Ltd

Astrium is an Anglo-French-German-Spanish-Dutch company that has nearly a quarter of its workforce based in the UK and claims world-leading expertise as prime contractor for Ariane 5, the Columbus space laboratory and the automated transfer vehicle for the international space station.

In the UK we are renowned for our design and manufacture of telecommunications satellites

Colin Paynter

Chief Executive

Astrium UK

The SSTL company is said to be one of the great successes of the UK space industry with innovative technologies that have changed the economics of space through an ability to produce small, low-cost satellites within rapid timescales.

Astrium’s Chief Executive in the UK, Colin Paynter, said that SSTL will be “a substantial complement” to its worldwide operations.

“In the UK we are renowned for our design and manufacture of telecommunications satellites, interplanetary spacecraft and satellite services provision,” he added.

“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 its innovative approach to developing new markets for space.”

University of Surrey

The deal provides the financial and industrial resources required for SSTL’s expansion and future development. Completion of the acquisition is subject to obtaining relevant regulatory approval.

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

He said: “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 while preserving our unique approach to space” he continued.

Professor Christopher Snowden, Vice-Chancellor of the University of Surrey, commented: “This is a great move for 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, while 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 the future of the company and space research,” he added.

By retaining a small stake in SSTL, the university shows its commitment to the future of the company and space research

Professor Christopher Snowden

Vice-Chancellor

University of Surrey

SSTL is joining EADS Astrium following a decision by Surrey University to sell its stake of about 80 per cent in the satellite manufacturer. SSTL will remain an independent UK company with its individual brand and unique approach to space following the agreement, while benefiting from access to the resources of a large corporation including design, manufacturing and test facilities.

Astrium will benefit from enhanced links with Surrey University 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 telecoms 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 Surrey University and EADS Astrium.

This 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.