From Via Satellite
ST Engineering is determined to build one of the most important companies in satellite over the next few years. Its acquisition of Newtec is yet more evidence of an progressive strategy to serve the industry better. Tang Kum Chuen, president of satellite systems, electronics, ST Engineering told Via Satellite that the acquisition of Newtec will strengthen its satcom business through products, solutions and a customer base that is complementary and synergistic to its U.S.-based iDirect and Singapore-based satcom businesses. “The combined business will put us in a stronger position to participate in the future growth of satcom and aligns with our strategy to invest in growth areas in the Smart City arena,” Tang said. “Newtec owns strong Intellectual Property (IP) in bandwidth efficiency and Ultra High Throughput technologies that will accelerate our go-to-market cycles, and offer customers superior solutions at a more rapid pace. The combination of advanced technologies from both companies will enable us to diversify and expand into new market segments and offer higher value-add in particularly to address emerging applications in 5G connectivity, broadcast and Internet of Things (IoT) segments.”
ST Engineering sees a lot of synergy with iDirect and Newtec and Tang believes there is “significant potential” to grow the satcom business. Having a footprint in Europe with Newtec will give ST Engineering access to new markets. When asked directly whether they would keep the Newtec brand, Tang declined to answer. “We will continue to invest in Newtec in Belgium to position it to be the Group’s European center for the satcom business. The complementary and synergistic effect of this proposed acquisition will enable us to meet demand across the full spectrum of the satcom market,” he said.
Once the transaction is closed, ST Engineering will implement an integration plan that includes integrating the two businesses with a common technology strategy and product offering roadmap that can address the evolving needs of its customers with higher value-add and faster response. It will combine the complementary technologies from both companies, enabling it to accelerate its time to market to meet emerging demands. “Customers will benefit from this proposed acquisition that incorporates the best of both Newtec and iDirect technology — highest efficiency, better performance, and greater flexibility to serve a wide range of markets and emerging needs,” said Tang. Continue>