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Iridium Completes Satelles Acquisition; Introduces Iridium Satellite Time and Location (STL)

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Iridium Communications Inc. (IRDM) completes the acquisition of Satelles, Inc., becoming a leader in secure satellite-based time and location services. The new Iridium Satellite Time and Location (STL) service enhances GPS security for critical infrastructure, data centers, 5G base stations, and various sectors.
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The completion of Iridium Communications' acquisition of Satelles marks a strategic expansion into satellite-based time and location services. This move could potentially open up new revenue streams and consolidate Iridium's market position. The integration of Iridium Satellite Time and Location (STL) into their existing portfolio diversifies their offerings and provides a hedge against vulnerabilities in GPS and GNSS systems. By providing a solution that is resistant to spoofing and jamming, Iridium addresses a critical need for secure communication, which is especially relevant in sectors like aviation and maritime where safety and reliability are paramount.

From a market perspective, this acquisition could enhance Iridium's appeal to investors who are looking for companies with a robust and diversified service offering. Additionally, the fact that the service can be integrated by Iridium's large ecosystem of partners suggests potential for widespread adoption, which could translate into significant long-term revenue growth. However, it's important to monitor how quickly the market adopts these new services and whether Iridium can maintain a competitive edge as other players may look to offer similar solutions.

Financially, the acquisition of Satelles by Iridium Communications could have meaningful implications for the company's balance sheet and income statement. The initial investment and associated costs of the acquisition will need to be scrutinized against the potential increase in revenue from STL services. Investors should look for increases in operating expenses in the short term, as integrations of this nature typically involve significant upfront costs. However, if the STL service is as scalable and in-demand as suggested, there could be a positive impact on the company's profit margins over time.

Another financial aspect to consider is the potential for Iridium to leverage STL services to enter into long-term contracts with clients in critical sectors, which would provide a stable and predictable cash flow. The ability to secure critical infrastructure and 5G base stations could also position Iridium favorably as these technologies continue to expand globally. The company's next few quarterly reports will be key in assessing the financial success of this acquisition.

From a cybersecurity standpoint, the acquisition of Satelles by Iridium Communications is a significant development. The reliance on GPS and other GNSS systems for critical infrastructure and data centers comes with inherent risks of spoofing and jamming, which can lead to severe disruptions. Iridium's STL solution offers an additional layer of security that is becoming increasingly necessary as threats to global positioning systems grow more sophisticated. By using small, low-cost hardware that doesn't require outdoor antennas, Iridium is lowering the barrier to entry for enhanced security measures.

For businesses and sectors that are particularly vulnerable to these risks, such as aviation and maritime, the value proposition of STL services is clear. The ability to secure time-synchronized applications is not just a technical improvement; it's a business necessity that could prevent potentially catastrophic events. As cyber threats continue to evolve, the demand for such secure solutions is likely to increase, positioning Iridium as a key player in this niche market.

MCLEAN, Va., April 2, 2024 /PRNewswire/ -- Iridium Communications Inc. (NASDAQ: IRDM), a leading provider of global voice and data satellite communications, today announced that it has completed its acquisition of Satelles, Inc. The closing of this acquisition establishes Iridium as the leader in highly secure satellite-based time and location services that complement and protect GPS and other GNSS-reliant systems.

Now referred to as Iridium® Satellite Time and Location (STL), the service joins the Iridium portfolio of solutions available for direct integration by the company's ecosystem of approximately 500 partners around the world. Iridium STL makes it easy to secure GPS and other GNSS-reliant systems' time-synchronized applications from vulnerabilities like spoofing and jamming, using small, low-cost hardware that doesn't require outdoor antennas. The solution helps secure critical infrastructure, data centers, 5G base stations and applications across the aviation, maritime, land mobile and IoT sectors.

"The initial feedback we've gotten from partners in the short time since the initial announcement has made us even more excited about Iridium STL's potential. We're ready to step on the gas and expand the availability of Iridium STL to markets around the world," said Iridium CEO, Matt Desch. "With our experienced partner ecosystem and global footprint, this needed capability can quickly help make the critical services we all rely on every day more efficient, reliable and secure."

Enabled by the Iridium satellite constellation's crosslinked LEO architecture, Iridium STL delivers truly global, secure time and location signals that are 1,000 times more powerful than GNSS constellations, works indoors and continues to work during regional GNSS system outages. Iridium anticipates the Iridium STL line of business will generate over $100 million in service revenue per year by 2030, with additional revenue from equipment and engineering.  The closing of this transaction marks completion of the first acquisition of another company in Iridium's history.

To learn more about Iridium, visit: www.iridium.com

About Iridium Communications Inc.

Iridium® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations, and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2019, the company completed a generational upgrade of its satellite network and launched its specialty broadband service, Iridium Certus®. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services, and partner solutions, visit www.iridium.com.

Forward-Looking Statements

Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding the capabilities and potential revenue contribution of the Iridium STL service. Forward-looking statements can be identified by the words "anticipates," "may," "can," "believes," "expects," "projects," "intends," "likely," "will," "to be" and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding integration of Satelles's operations and personnel, the development of and market for Iridium STL products and services, and Iridium's ability to maintain the health, capacity and content of its satellite constellation, as well as general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption "Risk Factors" in the Company's Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission ("SEC") on February 15, 2024, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium's expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium's underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium's forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements.

Press Contact:

Investor Contact:

Jordan Hassin

Kenneth Levy

Iridium Communications Inc.

Iridium Communications Inc.

Jordan.Hassin@Iridium.com 

Ken.Levy@Iridium.com

+1 (703) 287-7421

+1 (703) 287-7570

X: @Iridiumcomm


 

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SOURCE Iridium Communications Inc.

Iridium Communications Inc. (IRDM) has completed the acquisition of Satelles, Inc., establishing itself as a leader in secure satellite-based time and location services.

The acquisition enhances Iridium's portfolio with the new Iridium Satellite Time and Location (STL) service, providing secure time-synchronized applications for critical infrastructure and various sectors.

The service helps secure GPS and other GNSS-reliant systems from vulnerabilities like spoofing and jamming using small, low-cost hardware, without the need for outdoor antennas.

The service enhances security for critical infrastructure, data centers, 5G base stations, and applications in aviation, maritime, land mobile, and IoT sectors.
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About IRDM

iridium communications inc. is the only mobile satellite service (mss) company offering pole-to-pole coverage over the entire globe. the iridium constellation of low-earth orbiting (leo), cross-linked satellites provides critical voice and data services for areas not served by terrestrial communication networks. iridium's subscriber growth has been driven by increasing demand for reliable, secure, global communications. iridium serves commercial markets through a worldwide network of hundreds of distributors, and provides services to the u.s. department of defense, and other u.s. and international government agencies. the company's worldwide customer base represent a broad spectrum of industry, including maritime, aeronautical, government/defense, public safety, utilities, oil/gas, mining, forestry, heavy equipment and transportation. iridium is in the planning and development phase for its next-generation satellite constellation, iridium next, which will begin launching and 2015 and r