SpaceX to Acquire Swarm Technologies

SpaceX is set to acquire Swarm Technologies, a satellite connectivity startup. This represents the first acquisition for the space company, which was founded 19 years ago and is led by Elon Musk.

Swarm Technologies Overview

Swarm currently manages a constellation comprised of 120 satellites, each approximately the size of a sandwich, alongside a network of ground stations. The proposed acquisition will involve the transfer of Swarm’s existing space and ground licenses to SpaceX, as well as any licenses currently awaiting approval from the relevant commission.

Upon approval of the transaction, Swarm will operate as a fully-owned subsidiary of SpaceX.

A Shift in Strategy

This acquisition signifies a notable change in SpaceX’s typical approach. Previously, the launch provider focused on the internal development of its technologies. The details of this deal were initially documented in filings submitted to the Federal Communications Commission (FCC).

The agreement between the two companies was finalized on July 16th. Financial specifics and the complete terms of the transaction have not been publicly disclosed. Representatives from both SpaceX and Swarm were unavailable for immediate comment.

Synergies and Benefits

According to the filing, Swarm’s operations will be strengthened by SpaceX’s greater financial resources and access to a wider range of capabilities. The acquisition will also create synergies due to SpaceX’s expertise in satellite design, manufacturing, and launch services.

Conversely, SpaceX will gain access to the intellectual property and specialized knowledge cultivated by the Swarm team. Integrating this skilled team into SpaceX is also anticipated to be advantageous.

Implications for Starlink

The impact of this acquisition on SpaceX’s Starlink satellite network remains uncertain. The satellites utilized by Swarm operate on a different frequency band than those within the Starlink constellation.

In the near future, Swarm intends to continue its progress towards its objective of deploying a 150-satellite constellation, as stated by CEO Sara Spangelo to TechCrunch last month.

Swarm’s Recent Development

Compared to SpaceX, Swarm is a relatively young company. It secured $25 million in Series A funding approximately three years ago, in August 2018. Commercial availability of its primary product was achieved earlier this year.

The Tile, Swarm’s flagship product, is a compact modem designed for integration into various connectivity devices. It provides a cost-effective solution for powering Internet of Things (IoT) devices through connection to the satellite network.

spacex to acquire satellite connectivity startup swarm technologies

Last month, Swarm also launched its second product, the Evaluation Kit, priced at $499. This all-inclusive package enables users to develop IoT devices utilizing a Tile, a solar panel, and other essential components.

The kit is designed to provide accessibility for anyone interested in creating an IoT device.