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Astrium buys up Surrey Satellite Astrium buys up Surrey Satellite
(40 minutes later)
The purchase of UK satellite maker SSTL by Europe's biggest space company, EADS Astrium, has gone through.The purchase of UK satellite maker SSTL by Europe's biggest space company, EADS Astrium, has gone through.
Surrey Satellite Technology Limited started out as a spin-out from the University of Surrey in 1985.Surrey Satellite Technology Limited started out as a spin-out from the University of Surrey in 1985.
It has become the world's leading manufacturer of small satellites, producing low-cost platforms for Earth observation missions.It has become the world's leading manufacturer of small satellites, producing low-cost platforms for Earth observation missions.
The deal, approved by the European Commission, will allow SSTL to maintain its own management and brand identity.The deal, approved by the European Commission, will allow SSTL to maintain its own management and brand identity.
"SSTL reached the point when we realised that if the company was going to continue to grow and to realise its full potential then it needed to have, essentially, richer parents than the university," explained Professor Sir Martin Sweeting, the executive chairman of SSTL."SSTL reached the point when we realised that if the company was going to continue to grow and to realise its full potential then it needed to have, essentially, richer parents than the university," explained Professor Sir Martin Sweeting, the executive chairman of SSTL.
"The university's first obligation is to its students and not as a financier for industrial activities, for business. We realised we had to make the change. We invited offers and the best one we got was from EADS Astrium.""The university's first obligation is to its students and not as a financier for industrial activities, for business. We realised we had to make the change. We invited offers and the best one we got was from EADS Astrium."
The deal sees Astrium pick up the University of Surrey's 85% stake in SSTL.
The EC was satisfied there would be no loss of competition in the market by allowing the tie up.
The Guildford company will be permitted - even encouraged - to compete for business against its new parent. This is already happening in the tender process for Europe's forthcoming satellite-navigation system, Galileo.
SSTL built the first test platform, Giove-A; and Astrium led the construction of the second demonstrator, Giove-B. Both have now bid to build the main constellation of spacecraft.
SSTL would do the work with OHB, based in Bremen, Germany.
But Sir Martin said that Astrium's and SSTL's core businesses were largely complementary.
"We have a little bit of overlap in the middle... but Astrium concentrates on big satellites - that's their speciality; we concentrate on small satellites. And it's now actually having the ability to cover the whole spectrum from large down to the smaller satellites which is attractive to both Astrium and to SSTL."
EADS Astrium employs some 12,000 staff across Europe, with substantial British centres in Stevenage and Portsmouth.
The space division of EADS leads the production of Europe's Ariane launcher and is a dominant force in spacecraft manufacturing. The company was prime contractor on Columbus, the European science lab attached last year to the International Space Station.