LONDON: Filtronic plc (AIM: FTC), the designer and manufacturer of products for the aerospace, defence, space and telecoms infrastructure markets, has entered into a strategic partnership and commercial agreement with Space Exploration Technologies Corp. (SpaceX).
The partnership includes the ongoing supply of E-band Solid State Power Amplifiers (“SSPA”) in addition to the development and supply of similar products at other frequency bands within SpaceX’s Starlink platform.
The partnership contract was executed with an initial irrevocable purchase order of $19.7m (£15.8m) to supply E-band SSPA modules, scheduled for delivery in FY2025, with further order flow expected to continue thereafter to support the ongoing deployment of SpaceX’s Starlink constellation, which provides high-speed, low-latency high-speed internet to users all around the world.
As part of the Strategic Partnership, the Company has is issuing a total of 21,712,109 warrants to SpaceX across two tranches, to enable SpaceX to subscribe for up to a maximum of 10% of the Company’s existing share capital, with such warrants expected to vest, on a variable basis, with full vesting of the warrants once approximately $60m (£48m) of orders have been placed by SpaceX.
Richard Gibbs, Chief Executive Officer, of Filtronic commented: “We are delighted to enter into this important Strategic Agreement with SpaceX, a market leader in LEO satellite constellations. This milestone development in our SpaceX partnership underlines our core value proposition of high-quality engineering and operational excellence. It also provides Filtronic with the opportunity to scale manufacturing, build capability and execute our technology roadmap. The team at Filtronic are excited to formalise and develop our existing relationship with SpaceX and secure the ongoing supply of E-band SSPAs. We also look forward to working alongside the SpaceX engineering team to develop new products for use in the Starlink system.”
Mike Nicolls, SpaceX’s Vice President of Starlink Engineering commented: “Filtronic has been an outstanding supplier for Starlink. They have matched our rate ramp and increasing demand for high-quality parts. Their strong engineering teams have taken ownership of their production process to meet our needs, taking their designs from wafer to functional unit, and are delivering quality parts in E-band which will enable the Starlink network to continue to grow and connect millions of more people around the world with high-speed, low-latency broadband internet.”
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