‘Smart’ move to acquire Newtec
Singapore Technologies Engineering Ltd (ST Engineering), through its subsidiary Singapore Technologies Engineering (Europe) Ltd, has entered into a conditional share purchase agreement to acquire a 100% ownership in Newtec Group NV, an established Belgium-based company in the satellite communications (satcom) industry.
ST Engineering has been on the lookout for opportunities to enhance its capabilities to accelerate the deployment of satcom-enabled 5G telecom network so as to bring more cost-efficient high-bandwidth connectivity to remote regions — and this is in line with its aim to participate and lead the advancement of the satcom industry to enable Smart Cities globally.
ST Engineering has been growing its satcom business through US-based iDirect and its Singapore-based products and services. A leader in the aeronautical and maritime segments, the company has transitioned to high-throughput satellite (HTS) managed services and it is also a technology provider for global satellite operators such as Inmarsat, Intelsat and SES.
The surge of Low Earth Orbit (LEO) constellations will increase bandwidth capacity and reduce operating cost. This will facilitate Smart City applications such as IoT, connected homes and cars, thereby driving demand for satcom services.
Newtec is a key technology provider in the satellite broadcast segment and it is among the first to successfully test over-the-air communication via LEO satellites.
“We are pleased to be able to acquire Newtec, an established satcom player with strong technology foundations.
“The differentiated yet complementary technologies, combined with our track record and established satcom experience, will enable us to innovate and deliver more value-added, advanced satellite products and capabilities to our customers, at a more rapid pace,” said Ravinder Singh, president, Electronics Sector, ST Engineering.
Roald Borré, chairman of Newtec Board of Directors, added: “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.”
Vincent Chong, president & CEO, ST Engineering, elaborated: “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.”
Indeed, the key to building a Smart City is affordable connectivity. With enhanced satcom capabilities, ST Engineering can now look forward to accelerating the deployment of satcom-enabled 5G telecom network in Asia and beyond.
