Hanwha Systems acquires satellite antenna developer
The two companies signed the deal on Friday for an undisclosed amount.
Hanwha Systems is a provider of IT infrastructure, electronics and aerospace technology specialized in the field of defense. The acquisition of Phasor Solutions marks its entry into the satellite antenna market, which it expects will be worth $42.4 billion by 2026.
According to Hanwha, Phasor Solutions is the leading developer of broadband electronically steerable antenna (ESA), which enables high-speed internet in remote or moving locations, like in-flight, in the middle of the sea or in the desert. The company's specialty is in developing semiconductor-based satellite antennas.
Hanwha Systems already has the technology to make radar systems that go inside sensors or satellites, but hasn’t produced the antenna that receive those signals on earth. As part of an initiative to expand its portfolio, Hanwha has been considering acquiring Phasor Solutions since last year. The final call was made this year, after the British company started struggling in a tough business environment due to the Covid-19 pandemic.
“Though we are going through hard times due to the impact of the Covid-19 pandemic, our company made a swift decision to investment as this market has big potential for growth and this technology is of strategic importance for Hanwha Systems,” Kim Youn-chul, CEO of Hanwha Systems.
Hanwha Systems is gambling on satellite antennas due to their compatibility with low-earth orbit satellites. Low-earth orbit satellites hovering above earth can provide 4G LTE or 5G internet connectivity of to anywhere on the planet, without the need to establish base stations on the ground.
“Leading U.S. companies like Amazon and SpaceX have sent up low-earth orbit satellites, but it’s still a field that’s just started. There aren’t many companies that can make satellite antennas either, so our acquisition was part of a plan to enter the market earlier than others,” said a Hanwha Solutions spokesman.
BY SONG KYOUNG-SON [email@example.com]