Spanish defense contractor buys small satellite mission specialist Deimos

TAMPA, Fla. Indra, one of Spains largest defense contractors, announced plans Aug. 7 to beef up its newly created space business by acquiring European small satellite mission specialist Deimos.

Currently owned by Spanish energy giant Elecnor, Deimos provides satellite integration, subsystem and ground segment technologies with a team of more than 500 people across Spain, Portugal, Italy, Romania and the United Kingdom.

Financial details were not disclosed for the deal, which is subject to regulatory approvals the companies expect to get before the end of the year.

Indra described the proposed acquisition as the first step toward becoming a major player in domestic, European, and international space programs.

It comes after Indras shareholders approved plans in June to spin off space assets and establish a new company, dubbed Space NewCo, with the aim of generating more than one billion euros ($1.01 billion) in revenue by the end of the decade.

Space NewCo is also getting Indras 50% in Startical, Spainsproposed air traffic surveillance and communications constellationas part of these plans.

With these developments Indra demonstrates its commitment and its desire to stand at the forefront of the European space industry, Indra said in an Aug. 7 news release, with an integral presence in the value chain.

Indra has also invested in Spanish low Earth orbit satellite operator Sateliotand was reported in December to be seeking a stake in Hispasat, Spains flagship geostationary operator majority-owned by local power company Red Elctrica.

The Spanish contractor, which posted 4.3 billion euros in revenues for its most recent financial year, has more than 57,000 employees and a local presence in 46 countries.

Deimos space activities include leading a consortium that aims to demonstrate an inflatable heat shield under a European Commission contract for ICARUS, or Inflatable Concept Aeroshell for the Recovery of a re-Usable launcher Stage.