SES to Acquire DRS Global Enterprise Solutions

Photo: SES

SES is acquiring DRS Global Enterprise Solutions (GES), a U.S.-based subsidiary of Leonardo DRS, in a move that SES says will double its revenue from the U.S. government. SES announced the $450 million deal on Tuesday. 

It is subject to regulatory approvals and expected to be completed in the second half of this year. Once the deal closes, SES plans to combine GES with with its subsidiary SES Government Solutions to form a solutions provider serving the US Government. 

SES CEO Steve Collar said Tuesday during the SATELLITE 2022 panel “Satellite Operators: Building Connectivity Services Imperium,” that the deal has been in the works for 18 months. He said DRS Global Enterprise Solutions has great customers, great end users, and a great network, and the deal fits in with SES’s innovations with the mPOWER system. 

SES said this acquisition accelerates its goal of growing the Networks business, adding high-value government customers. The consolidation of GES with SES GS is expected to add about $40 million of EBITDA and $25 million of annualized run-rate synergies, including opportunities to support and enhance existing networks and services with the SES multi-orbit network.