SpaceX Acquires Satellite Data Startup 'Swarm Technology'

Unusual Acquisition of Small Startup with About 30 Employees
Securing Intellectual Property Rights for Starlink Service Expansion

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. space exploration company SpaceX has announced the acquisition of the satellite data startup Swarm Technologies. SpaceX is regarded as making this unusual acquisition to secure various intellectual property rights, including satellite data technology owned by Swarm Technologies. This move is interpreted as an effort to expedite the full launch of Starlink, SpaceX's key business focused on satellite ultra-high-speed internet service.

According to foreign media such as CNBC on the 9th (local time), SpaceX acquired Swarm Technologies, a satellite data startup, on the 16th of last month. According to Swarm Technologies' disclosure on the 6th, after the merger process is fully completed, Swarm Technologies will become a 100% subsidiary of SpaceX. Specific details such as the acquisition amount and conditions have not been disclosed.

Founded in 2016, Swarm Technologies operates about 120 of the world's smallest commercial satellites known as 'SpaceBEE.' Using these small satellites, the company provides services that connect Internet of Things (IoT) devices. It is known as a satellite networking service provider similar to Starlink, which SpaceX is actively promoting. Swarm Technologies' corporate value was estimated at around $85 million as of 2019.

CNBC reported, "This acquisition appears to be aimed at obtaining the satellite and ground station licenses from the U.S. Federal Communications Commission (FCC) and intellectual property held by Swarm Technologies. It is an unusual acquisition for SpaceX, which has typically solved technical issues through in-house development."

The acquisition is also expected to accelerate the full launch of SpaceX's Starlink service. The U.S. space specialist media SpaceNews stated, "SpaceX seems very interested in Swarm Technologies' technology and employees, which will help build the Starlink service that provides ultra-high-speed internet by launching about 12,000 small communication satellites. However, since Swarm Technologies' satellites and Starlink satellites operate on different frequency bands, it will be difficult to achieve immediate technical synergy."

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