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4w ago

Iridium to Buy Out Aireon in $367 Million Deal

Full ownership gives Iridium a direct path to pair global aircraft surveillance with its satellite network for new safety services.

Nav Canada air traffic controllers monitor air traffic at the Nav Canada control centre in Montreal on March 2, 2018. THE CANADIAN PRESS/Graham Hughes
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Iridium just bought out the company tracking 190,000 flights a day — and the $367 million price tag is really a bet that GPS is quietly becoming unreliable
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Overview

  • Iridium, which announced the agreement Thursday, will acquire the remaining 61% of Aireon for about $366.7–$367 million, pay the price in two equal installments, assume roughly $155 million of debt, and target closing in early July pending regulatory approvals.
  • NAV CANADA and NATS extended their Aireon data contracts through 2035 under the deal, with provisions to keep working on space‑based VHF that would let pilots talk to controllers over oceans using existing radios.
  • Aireon runs the only space‑based ADS‑B network, which uses signals aircraft already broadcast to report identity, position, altitude, speed and heading, providing global coverage that tracks about 190,000 flights per day and fills oceanic and polar gaps.
  • Iridium plans to combine Aireon’s surveillance and interference‑detection data with its satellite links and positioning, navigation and timing tools to develop offerings such as space‑based VHF services, GPS jamming and spoofing alerts, and operational analytics.
  • The company expects at least $100 million in annualized service revenue and about $30 million in annualized operational EBITDA from the acquisition, and it flagged potential growth if the FAA pursues space‑based surveillance as it upgrades U.S. air traffic systems.