Leonardo DRS to sell satellite business for $450M

Arlington-based Leonardo DRS Inc., a subsidiary of Italian defense contractor Leonardo SpA, has agreed to sell its satellite communications business to SES for $450 million, according to a news release.

The deal is expected to close in the second half of 2022 subject to regulatory approval.

“The DRS GES [Global Enterprise Solutions] business is well-respected by its customers and within the satellite communications provider services market, and we are very pleased with the agreement reached with SES,” said Leonardo DRS CEO Bill Lynn. “While the DRS GES business has flourished, Leonardo DRS has shifted its portfolio focus, and selling it now makes the most business sense.”

The divestiture will allow the Leonardo DRS to consider larger acquisitions to strengthen its core capabilities and open new opportunities while continuing to focus on meeting the Pentagon’s needs, Lynn added.

Once acquired, SES plans to organize DRS GES under Reston-based SES Government Solutions, a wholly-owned subsidiary of the Luxembourg-based SES. For more than 40 years, SES GS has worked with the federal government, including the Department of Defense’s combatant commands.

“SES GS is the only satellite operator with operational experience delivering multi-orbit, multi-band managed SATCOM services to the Department of Defense and its warfighters,” said SES GS President and CEO Pete Hoene “With SES GS and DRS GES’ deep and trusted relationships with U.S. government agencies, we look forward to continuing to provide critical elements to meet the DoD’s connectivity requirements and deliver assured communications.”