SES Completes DRS Global Enterprise Solutions Acquisition
SES has completed its acquisition of DRS Global Enterprise Solutions (DRS GES) and will combine the business with subsidiary SES Government Solutions to serve U.S. government customers.
SES expects the consolidation to unlock $25 million of annualized run-rate synergies. The deal is expected to double SES’s U.S. government business and make Government the largest data business segment in terms of revenue. Government is a growing subgroup of SES Networks revenue, and grew revenue 3.8% in 2021 compared to 2022. In 2021 financial results, Government was the largest subgroup of Networks revenue, at 296 million euros.
SES said SES GS will serve as a solutions provider for the U.S. government’s multi-orbit satcom needs. It will integrate and manage multi-orbit Geostationary and Medium-Earth Orbit (MEO) services, including with service from SES’s upcoming O3b mPOWER constellation.
SES Government Solutions will be led by David Fields, who led DRS GES. Retired U.S. Air Force Brig. Gen. Pete Hoene is retiring after 11 years at the helm of SES GS. Fields leadership is effective as of Aug. 1.
“SES GS will be significantly expanding its differentiated value proposition for the U.S. government, with a trusted multi-operator network integration and service management solutions. The breadth of our capabilities, now spanning both connectivity and integration, allows for building, managing and supporting the most advanced satellite networks solutions for our U.S. government customers,” Fields commented.
The operator announced the $450 million acquisition in March. DRS GES was a U.S.-based subsidiary of Leonardo DRS.