STL will be established as a new division within Iridium, with Dr Michael O'Connor, CEO of Satelles, at the helm.
Iridium Communications has entered into an agreement to acquire Satelles, Inc., a provider of highly secure satellite-based time and location services that complement and safeguard GPS and other GNSS-reliant systems. The service, known as Satellite Time and Location (STL), offers a user-friendly, highly secure solution designed to enhance the efficiency and reliability of timing systems for digital infrastructure, including 5G base stations, data centres, and critical infrastructure, while mitigating GNSS vulnerabilities using cost-effective hardware that eliminates the need for outdoor antennas.
This strategic acquisition aligns with Iridium’s commitment to investing in innovative technologies that leverage its unique network capabilities, surpassing competing solutions. The assured Positioning Navigation and Timing (PNT) services market, estimated to reach $3.5bn by 2032, is transitioning towards integrated small-form-factor devices, emphasising the need for compact solutions like STL. Time synchronisation and location data play a vital role across various industries, including financial services, telecommunications, cybersecurity, and transportation, each relying on precise timing for critical operations.
Speaking about the deal, Iridium CEO Matt Desch said: “This market is growing; it’s a perfect application of our network, and this solution solves a problem for critical industries better than anything else. Acquiring Satelles makes perfect sense for Iridium and is consistent with what our strategy has always been, which is to take advantage of our unique network to do what others can’t or do it better than anyone else can. STL is the superior solution available today, and we have been following and investing in Satelles’s technology roadmap to allow us to create even more opportunity. We’re excited to formally bring the Satelles team “in-house,” to the Iridium family.”
The STL service leverages Iridium’s satellite constellation’s robust broadcast paging channels to deliver precise timing information globally, offering secure time and location signals that outperform GNSS constellations by 1,000 times. Resilient to regional GNSS outages and operable within buildings, STL is currently employed to secure digital infrastructure for financial markets, governments, and major corporations.
STL will be integrated as a new business line within Iridium, led by Satelles CEO, Dr Michael O’Connor, who will report directly to Matt Desch. Dr O’Connor expressed optimism about the acquisition, stating, “Bringing STL into the Iridium family will accelerate this capability’s growth, benefiting our customers and society at large.”
Iridium anticipates that the STL line of business will generate over $100m in service revenue annually by 2030, in addition to revenue from equipment and engineering. The acquisition, expected to be completed in the coming weeks, involves Iridium assuming all rights to the Satelles patent portfolio and an approximate payment of $115m, net of cash remaining in the company, financed through a tack-on to its term loan.
