Business
Boeing Plans To Buy Small Satellite Maker Millennium Space Systems
Boeing wants to expand its satellite portfolio with the acquisition
The world’s largest aerospace company, the Boeing Co. on Thursday announced it has plans to acquire Millennium Space Systems, a satellite making company based in El Segundo, California. Founded in 2001, Millennium Space Systems has approximately 260 employees. It has developed satellites ranging from 50 kg to more than 6,000 kg.
The acquisition deal is subject to the customary conditions and is expected to close by the end of third quarter 2018. As part of the deal, once the acquisition process gets over, Millennium Space Systems will become a Boeing subsidiary and operate under its current business model and reporting to Mark Cherry, vice president and general manager of Phantom Works. The financial terms and conditions of the deal are yet to be disclosed.
The privately owned Millennium Space Systems mainly manufactures military satellites. The company also has deep expertise in complex systems engineering. Although Millenium has received contracts from NASA, its primary customer is the U.S. Air Force. One of the satellites developed for the Air Force is expected to launch sometime next year. Notably, Boeing’s acquisition will open up opportunities for the aerospace giant to compete in the national security space sector.
In an official statement, Leanne Caret, chief executive of Boeing’s defense, space and security sector, said Millennium Space Systems’ expertise in developing small-satellite solutions will complement Boeing’s existing satellite portfolio, allowing the company to meet the needs of a diverse set of customer needs.
Caret added that his company is looking forward to incorporating Millennium’s end-to-end mission solution capabilities into its service offerings in satellite operations and data solutions.
“By combining our tools, talent, technologies, and culture, we’ll be able to do even more incredible things as part of Boeing,” said Millennium Space CEO Stan Dubyn.
Boeing has announced that the acquisition will have no impact on the company’s 2018 financial guidance or its commitment to returning free cash flow to shareholders.
