Thuraya invests and extends its collaboration with Astrocast

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04.04.2023

Swiss startup Astrocast and Yahsat’s mobility arm Thuraya have strengthened collaboration through a strategic investment in LEO IoT. Thuraya has agreed in heads of terms to invest through a convertible loan valued at $17.5 million and further extend its Technical Agreement for another four years.

As the leading global nanosatellite IoT network operator, Astrocast enables low power wide area connectivity solutions across core industries, including Transportation & logistics, Oil & Gas, Utilities, Mining, Forestry, Agriculture, and Maritime. The Astrocast network enables companies to monitor, track, and communicate with remote assets from anywhere in the world. It relies on superior L-band spectrum through a strategic alliance with Thuraya. In partnership with Airbus, CEA/LETI and ESA, Astrocast developed Astronode S, an ultra-low power and miniaturised module compatible with inexpensive L-band patch antennas.

The company has concluded Heads of Terms for an investment agreement with Thuraya Telecommunications Company, the mobile satellite services subsidiary of the UAE’s flagship satellite solutions provider, Al Yah Satellite Communications Company PJSC (Yahsat)the UAE’s flagship satellite solutions provider listed on the Abu Dhabi Securities Exchange (ADX; under the symbol: YAHSAT, ISIN: AEA007501017).

The transaction will be a convertible loan valued at US$17.5 million, marking Thuraya’s first investment in a LEO satellite constellation. As part of the agreement, both parties will also look to extend a technical cooperation agreement for another four years – originally entered between Astrocast and Thuraya in 2019. The agreement with Astrocast aims to strengthen Thuraya’s positioning in the IoT market and help expedite the execution of its strategy for satellite enabled IoT.

We are delighted to have secured this agreement with Thuraya, as we anticipate their support and expertise in guaranteeing Astrocast’s success in the low-power narrowband IoT market in the future. Our partnership with Thuraya has been solid for the past four years, and their continuous support is incredibly important to us. In addition, collaborating on creating new products and applications and leveraging the Thuraya distribution network will expedite the expansion of our customer ecosystem,” said Fabien Jordan, Founder & Chief Executive Officer at Astrocast.

The overall IoT market is projected to grow at a CAGR of 22% over the next four years to US$ 525 billion and the satellite IoT business is forecasted to generate cumulative revenues of US$ 6 billion over the same period. The strategic transaction with Astrocast represents a compelling opportunity for Thuraya to increase its exposure to a fast-growing sector that is still significantly under-penetrated and has a long runway for growth.

“We look forward to working with Astrocast to execute this strategic investment which highlights our continued belief in the outsized impact of the IoT sector for the space and satellite industries. We are pleased to further strengthen our relationship with Astrocast as we mutually explore ways to expand our service offering across GEO and LEO assets to unlock greater growth potential. Through this agreement, we are committed to enabling innovative solutions in the Maritime, Energy, Logistics, Transportation, Mining and Agriculture industries,” commented Said Ali Al Hashemi, Group Chief Executive Officer of Yahsat.

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