SpaceX is in the process of making its first acquisition of a satellite company. According to FCC filings, SpaceX has reached an agreement to buy satellite Internet of Things (IoT) startup Swarm Technologies.
The two companies have requested the FCC transfer Swarm’s Earth and space station licenses to SpaceX as Swarm will become a direct, wholly-owned subsidiary of SpaceX. The companies entered into an agreement on July 16. Financial details of the acquisition were not disclosed.
Swarm, named one of Via Satellite’s 10 Hottest Companies for 2021, offers remote IoT connectivity from sandwich-sized satellites at $5 per month per device. It sells a Swarm Tile modem for $119. The company first garnered media attention in 2018 for launching satellites without FCC approval, but now has around 100 satellites in orbit, and took its network live this year.
Swarm is vertically integrated, and built and designed its hardware, software, and protocols. SpaceX and Swarm told the FCC this combination will strengthen their ability to reach unserved and underserved parts of the world, and pointed to synergies between the companies.
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“Swarm’s services will benefit from the better capitalisation and access to resources available to SpaceX, as well as the synergies associated with acquisition by a provider of satellite design, manufacture, and launch services,” the FCC filing reads. “SpaceX will similarly benefit from access to the intellectual property and expertise developed by the Swarm team, as well as from adding this resourceful and effective team to SpaceX.”
Swarm is authorised by the FCC to operate a non-voice, non-geostationary mobile-satellite service in the 137-138 MHz and 148 -150.05 MHz bands. It has launched around 150 satellites.
This deal adds another area of satellite connectivity to SpaceX’s business, as it continues to build up its Starlink satellite broadband internet constellation.
