29 May EOS Completes Acquisition of Satellite Communications Business
Canberra 28 May 2020
Electro Optic Systems Holdings Limited (“EOS” or “Company”) (ASX: EOS) has completed the acquisition of the satellite communications business of Audacy Corporation as well as two technical initiatives in the expansion of its Communication Systems business. Acquisition Completion On 28 January 2020, EOS announced it had entered into transaction agreements to acquire all of the business and assets of Audacy Corporation, a US satellite communications company (“Acquisition”). The Acquisition was subject to commercial conditions as well as two separate approvals by agencies of the US Government:
1. The transfer of communication spectrum licenses from Audacy Corporation to EOS was subject to review and approval by the US Federal Communications Commission (“FCC”).
2. The acquisition of a business operating multiple satellites in space is subject to review and approval by the US Committee on Foreign Investment in the US (“CFIUS”).
The FCC and CFIUS reviews have been completed by those agencies and all necessary US Government approvals for completion of the Acquisition have been formally received by EOS. All commercial conditions for closing have been met.
The Acquisition was completed on 28 May 2020. EOS will now move forward to deploy communication satellites in a constellation which EOS has named EOSLink.
The EOS strategic approach to space communications is based on the widely-held industry view that optical communications, where EOS has very advanced technology and strong capabilities, will carry the majority of space communication traffic by 2036. This traffic is then expected to be around 100 times the volume of today, but will generate revenues for service providers at only the same level as today. For the market segment EOS intends to service, which excludes broadcast and internet applications, this revenue currently exceeds AU$100 billion annually. EOS intends to address a niche in this segment.