February 6, 2018
February 6, 2018
See original announcement in ST Engineering news releases
Singapore, 6 February 2018 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that its electronics arms, Singapore Technologies Electronics Limited (ST Electronics), has signed an agreement with SatixFy UK Limited (SatixFy UK) through its subsidiary ST Electronics (Satcom & Sensor Systems) Pte. Ltd. to jointly invest in a joint venture company (JVCo). ST Electronics’ planned investment of US$20m (about S$26m) is for a 49% stake in the JVCo, with the remaining 51% to be held by SatixFy UK.
The JVCo, which will be set up in the UK, is part of ST Electronics’ strategy to enhance its global access to the emerging high growth commercial aviation connectivity market. It will develop a state-of-the-art satellite antenna system that delivers enhanced in-flight connectivity (IFC) for commercial aviation.
The concept, which was showcased today at the Smart City Cluster of the ST Engineering booth at Singapore Airshow 2018 held at the Changi Exhibition Centre, utilises Digital Beam Forming technology based on SatixFy UK’s first-of-its-kind chip technology. This technology will enable seamless and simultaneous communications with multiple satellites, at higher performance, lower SWAP (Size, Weight and Power) and significantly lower cost than existing solutions. In addition to providing enhanced broadband connectivity experience for in-flight passengers, the technology will improve operational efficiencies of commercial and business airline operators.
“This joint venture will enhance our satellite communications business. Together with SatixFy, we will deliver an affordable and high-performance technology solution that generates significant cost savings for airline operators and gives enhanced in-flight experience for their customers. We believe this innovative technology has the potential to generate tremendous value for the growing worldwide aviation connectivity market,” said Mr Ravinder Singh, President, ST Electronics.
“SatixFy UK is excited to be a partner with ST Electronics to bring together our respective strengths in satellite solutions and Aerospace to provide what we believe will be a truly unique In Flight Connectivity (IFC) offering to the Aviation industry. The satellite industry is undergoing significant changes with the launch of various LEO or Medium Earth Orbit (MEO) constellations and Ultra High Throughput Satellites (U-HTS). Our solution will provide customers with a solution that is future proof and can leverage the best available satellite infrastructure now and in the future,” said Yoel Gat, CEO of SatixFy Limited, the parent company of SatixFy UK.
SatixFy UK is a leading provider of baseband modem and electronically steerable antenna chips, products and solutions that deliver highest performance with radically reduced cost, size, weight and power. It is at the forefront of designing the most advanced silicon-based electronically steerable antennas.
The setup of this JV company is not expected to have any material impact on the consolidated net tangible assets (NTA) per share and earnings per share of ST Engineering for the current financial year.