ABU DHABI, Thuraya Telecommunications Company, the mobile satellite services provider under Yahsat, today announced that it has concluded Heads of Terms for an investment agreement with Astrocast, a leading Low Earth Orbit (LEO) and Internet of Things (IoT) network operator.
The transaction between Thuraya and Astrocast will be in the form of a convertible loan valued at US$17.5 million and marks Thuraya’s first investment in a LEO satellite constellation. As part of the agreement, both parties will also look to extend a technical cooperation agreement for another four years that was originally entered between Astrocast and Thuraya in 2019.
strocast operates one of the world’s most advanced global nanosatellite IoT networks with a focus on enabling low power wide area connectivity solutions across core industries including transportation and logistics, oil and gas, utilities, mining, forestry, agriculture, and maritime. The agreement with Astrocast aims to strengthen Thuraya’s positioning in the IoT market and help expedite the execution of its strategy for satellite enabled IoT.
The overall IoT market is projected to grow at a compound annual growth rate (CAGR) of 22 percent over the next four years to US$525 billion and the satellite IoT business is forecasted to generate cumulative revenues of US$6 billion over the same period. The strategic transaction with Astrocast represents a compelling opportunity for Thuraya to increase its exposure to a fast-growing sector that is still significantly under-penetrated and has a long runway for growth.
li Al Hashemi, Group Chief Executive Officer of Yahsat, said, “We look forward to working together with Astrocast to execute this strategic investment which highlights our continued belief in the outsized impact of the IoT sector for the space and satellite industries. We are pleased to further strengthen our relationship with Astrocast as we mutually explore ways to expand our service offering across GEO and LEO assets to unlock greater growth potential. Through this agreement, we are committed to enabling innovative solutions in the Maritime, Energy, Logistics, Transportation, Mining and Agriculture industries.
Fabien Jordan, Founder and Chief Executive Officer at Astrocast, added, “We are delighted to have this agreement with Thuraya, as we anticipate their support and expertise in guaranteeing Astrocast’s success in the low-power narrowband IoT market in the future. Our partnership with Thuraya has been solid for the past four years, and their continuous support is incredibly important to us. In addition, collaborating on creating new products and applications and leveraging the Thuraya distribution network will expedite the expansion of our customer ecosystem”
Source: Emirates News Agency