Singapore Technologies Engineering (ST Engineering) revealed that its subsidiary, Singapore Technologies Engineering (Europe), entered into a conditional share purchase agreement to acquire a 100 percent ownership in Newtec. The consideration of $281.3 million (250 million euros) on a cash-free and debt-free basis for the proposed acquisition, subject to closing adjustments, is payable in cash.
The proposed acquisition of Newtec aims to add intellectual property, products, and market access. ST Engineering 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 help enable ST Engineering to meet demand across the full spectrum of the satcom market.
“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,” said ST Engineering President and Chief Executive Officer (CEO) Vincent Chong. “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.”