(Bloomberg) — Satellite operator SES SA has agreed to buy Global Enterprise Solutions from defense contractor Leonardo DRS Inc. for $450 million to bolster its U.S. defense business.
The deal, expected to close in the second half of 2022, will double SES’s U.S. government revenues. GES’s sales of “mission-critical communications” and securities services to the U.S. Defense Department are projected to grow to $250 million per year, Luxembourg-based SES said in a statement Tuesday.
Industry revenue from government services will see an “almost fourfold expansion between 2021 and 2030 on the back of increased demand for reliable, secure connectivity,” SES said, citing Northern Sky Research.
“While the DRS GES business has flourished, Leonardo DRS has shifted its portfolio focus, and selling it now makes the most business sense,” Leonardo DRS Chief Executive Officer Bill Lynn said in a statement. The company, based in Arlington, Virginia, is a wholly owned subsidiary of Italian defense contractor Leonardo SpA.
Bloomberg News reported in January that Leonardo was considering options for the GES business, including a sale.
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