Surrey sells satellite firm to EADS

Sale agreed

The University of Surrey is set to receive between £40 million and £50 million – the exact terms have not been disclosed – from the sale of most of its 85 per cent stake in Surrey Satellite Technology Ltd (SSTL) to the aerospace and defence giant EADS.

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.

The university is likely to retain what Sweeting calls “a very small minority share just to cement the relationship in research and academic training with the company”. A key advantage of the sale, said Sweeting, is that EADS Astrium can provide “the sort of financial depth” which the university, as an educational and charitable institution, is not not able to do.

Professor Christopher Snowden, Vice-Chancellor of the University of Surrey commented: “This is a great move for both the University and SSTL. On completion, this will represent one of the largest cash spin-outs from any UK university. It will also allow the company to realise its full potential as a rapidly growing and leading supplier of small and micro satellites, whilst the university retains the benefit of close interaction with SSTL and its new partner EADS Astrium.”

Sweeting said there would be “no changes to SSTL’s way of doing business” and no changes to its management. The company would be “completely independent” within the EADS group.

SSTL employs 270 staff and was formed by the University of Surrey in 1985 to exploit the commercial small satellite market. It has launched 27 small satellite missions for a range of applications including Earth observation, communication and navigation. The company also provides know-how transfer and training programmes and consultancy services, and performs studies for ESA, NASA and commercial customers related to platform design, mission analysis and planning.

Before the sale – which is subject to regulatory approval – SSTL was owned 85 per cent by the University of Surrey, 5 per cent by SSTL staff and 10 per cent 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.