Combination of SES GS and DRS GES unites the leader in multi-orbit satellite networking with unparalleled US Government satellite communications integration to deliver broader suite of high-value, best-in-class satcom solutions to US government customers
Reston, Va., 21 March 2022 - Leonardo DRS Inc., announced today it has signed a definitive agreement to sell its Global Enterprise Solutions (GES) business to SES for $450 million. The transaction has been approved by the boards of directors of Leonardo DRS and of SES. Finalization of the deal is targeted for the second half of 2022 subject to regulatory approvals.
The DRS GES business is well-respected by its customers and within the satellite communications (SATCOM) provider services market, and we are very pleased with the agreement reached with SES, said Bill Lynn, CEO of Leonardo DRS. While the DRS GES business has flourished, Leonardo DRS has shifted its portfolio focus, and selling it now makes the most business sense, he said.
The DRS GES business is a leading provider of commercial satellite communications to the US Government, and delivers world-class, mission-critical satellite communications and security solutions to customers anywhere in the world.
SES plans to organize the DRS GES business unit under SES Government Solutions (SES GS), a wholly-owned subsidiary of SES. For over 40 years, SES GS has supported the mission essential operations of Combatant Command (COCOM), Military Services, and other US Government customers. SES GS delivers satellite communication solutions leveraging SES's 70 satellites at geostationary and medium earth orbits and supporting ground infrastructure.
SES GS is the only satellite operator with operational experience delivering multi-orbit, multi-band managed SATCOM services to the Department of Defense (DoD) and its warfighters, said Pete Hoene, President and CEO of SES Government Solutions. With SES GS and DRS GES' deep and trusted relationships with US Government agencies, we look forward to continuing to provide critical elements to meet the DoD's connectivity requirements and deliver assured communications.
Leonardo DRS regularly assesses its portfolio to ensure strong alignment with our customers' needs and priorities. As the company continues to focus on transforming to meet the DoD's important priorities, this divestiture will allow the company to consider larger potential acquisitions that would strengthen its core capabilities and open new market opportunities.
As we enter a new and exciting phase at Leonardo DRS, we are investing in our strengths to improve our core capabilities, Lynn said. We are looking beyond incremental technology advances and moving towards a larger role in producing ground-breaking, market-disruptive technologies for our customer needs today, and well into the future, he said.
The combination of SES GS and DRS GES businesses unites the leader in multi-orbit satellite networking with unparalleled US Government satellite communications integration, Hoene said. Both SES GS and DRS GES have a trusted reputation for delivering the best network solutions to meet unique and demanding US Government requirements.
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Combination of SES GS and DRS GES unites the leader in multi-orbit satellite networking with unparalleled US Government satellite communications integration to deliver broader suite of high-value, best-in-class satcom solutions to US government customers
