Headquartered in Sweden, AAC Clyde Space is a world leader in nanosatellite end-to-end solutions, subsystems and platforms after merging with Clyde Space in Scotland. The company also supplies a range of technology components to other small satellite manufacturers globally.
In recent weeks, AAC Clyde Space has announced agreed deals for two proposed acquisitions, SpaceQuest in the US for SEK75.6m and Hyperion Technologies in the Netherlands for SEK22.8m. Both deals are in line with its strategy, meeting both commercial and technical goals and, importantly, adding US and European manufacturing capacities. We have lowered our revenue estimates for the ongoing business by 15% in FY20 and 3% in FY21 in line with the recent update, but the deals should profitably augment what is still strong organic revenue growth. A successful capital raise of SEK52m before costs should allow AAC to pursue and optimise further New Space investment opportunities as they arise.
Of over 1,000 nanosatellites launched since 1998, AAC Clyde Space is represented on 30–40%. Over the next five years around 3,000 nanosatellites should be launched as technology development extends the applications for low earth orbit (LEO) constellations, especially for communications. AAC Clyde Space has the capacity in Glasgow and Sweden to facilitate such expansion as well as develop its ‘Satellite as a Service’ offering, while increasing sales of subsystems to third-party satellite providers.