Singapore Technologies Engineering will buy Belgium-based satellite equipment maker Newtec Group NV for 250 million euros ($281.23 million).
The company’s UK-headquartered unit Singapore Technologies Engineering (Europe) will make a cash offer for Newtec, expanding its presence in the growing satellite communications industry, according to a ST Engineering statement issued late Wednesday.
The revenue and cost synergies of the new combined business are expected to produce about S$200 million ($147.55 million) in value, the company said.
The deal is expected to complete in the second half of the year and is subject to regulatory approval in a few countries.
Once completed, it will also add to the ST Engineering’s earnings from the second year onwards.
Newtec was not immediately available for comment on the deal.
Source: Reuters.com