UK space giant sells to EADS

The University of Surrey is set to receive £40 - £50 million from the sale of most of its 85% stake in Surrey Satellite Technology (SSTL) to the aerospace and defence giant EADS.

Profit Rocket. University of Surrey could make £50 million from the sale of their stake of SSTL

SSTL will remain an independent UK company with its individual brand following the agreement, whilst benefiting from access to the resources of a large corporation including design, manufacturing and test facilities.

Under the agreement, EADS Astrium will also invest in the university’s space centre to create a “space hub” at Guildford, said Professor Martin Sweeting, executive chairman of SSTL and one of the firm’s founders.

“SSTL operates in a highly competitive global market. If we are to continue changing the economics of space and provide the innovative solutions our customers demand we must expand and maintain our R&D investment. This acquisition strengthens SSTL enormously whilst preserving our unique approach to space,” he said.

Under the share purchase agreement, SSTL will be owned by EADS Astrium NV in the Netherlands. The agreement sees long-term research collaboration between the University of Surrey and EADS Astrium and will further advance the University’s cutting edge space research capacity. The collaboration will also allow Astrium to benefit from staff training and development opportunities afforded by the links with the University.

Before the sale – which is subject to regulatory approval – SSTL was owned 85% by the University of Surrey, 5% by SSTL staff and 10% by the US launch vehicle company SpaceX. The company had a turnover of £26 million last year and is currently building a further 14 spacecraft at its manufacturing facilities in Guildford.