SES to buy satellite business of Leonardo DRS for $450 mn

SES is set to acquire DRS Global Enterprise Solutions (GES), a US-based subsidiary of Leonardo DRS, for $450 million.
SES-20 and SES-21 satellites
SES said it will combine the GES business with SES Government Solutions (SES GS) for strengthening the delivery of critical connectivity solutions to the US Government.

“This investment reinforces our commitment to provide industry-leading solutions and services for government customers while delivering sustained growth for SES in a high-value segment in which we have a track record of partnership and success,” said Steve Collar, CEO of SES.

DRS Global Enterprise Solutions has supported custom end-to-end satellite communications solutions for land, sea, and air operations for the US Government. The business is a leading government services provider with over $250 million of projected annual revenue.

The investment accelerates SES’s strategy of growing Networks revenue by tapping high-value segments such as Government where SES has grown revenue by around 30 percent since 2017. SES said its revenue from serving the US Government would double in the size with the combination of GES and SES GS.

The consolidation of GES with SES GS is expected to add about $40 million of EBITDA and will benefit from the combination of future business expansion and $25 million of annualised run-rate synergies, including opportunities to support and enhance existing networks and services with the SES multi-orbit network.