SES and its wholly-owned subsidiary, SES Government Solutions (SES GS), have completed the acquisition of DRS Global Enterprise Solutions (GES) from Leonardo DRS for $450 million after obtaining all the necessary regulatory approvals.
The DRS GES business will be combined with SES GS to create a scaled solutions provider serving the multi-orbit satellite communications needs of the US Government and supporting missions anywhere on land, at sea, or in the air. With the combined businesses operating as SES Government Solutions, the new organization will comprise a cross-functional workforce with deep technical expertise and a proven ability to integrate and manage multi-orbit geostationary and medium earth orbit (MEO) services as well as multi-operator network solutions.
In particular, SES GS will offer highly flexible second-generation MEO services – via SES’s soon-to-be launched O3b mPOWER system – with a unique combination of low latency and high throughput per terminal for high-value missions, to an expanded government customer base. SES GS will also leverage essential tools and expertise in cybersecurity operations, customer support, governance and compliance.
The combined business will continue to serve US Government customers under the direction of the SES GS Proxy Board of Directors. The consolidation of DRS GES with SES GS is expected to unlock $25 million of annualized run-rate synergies, with government becoming SES’s largest data business segment in terms of revenue.
The combined business will be led by David Fields, who assumes responsibilities on August 1, 2022, as appointed by the SES GS Proxy Board. Fields has more than 30 years of experience in the satellite communications and information technology (IT) services industries and joins SES GS from DRS GES. He succeeds Brigadier General Pete Hoene, USAF (Retired), who, after 11 years at the helm of SES GS and decades of dedicated service in the satellite communications arena, will take his retirement.
“I am extremely excited about the potential that this combination unleashes, reinforcing our commitment to provide best-in-class satellite network solutions to the US Department of Defense customers,” said Brigadier General Billy Bingham, USAF (Retired), Chairman of the SES GS Proxy Board. “We are delighted to welcome Fields, who comes to SES GS with extensive knowledge and expertise in the satellite communications industry and a demonstrated record of achievement in the US Government sector. Well-respected by industry partners and customers, he has developed deep and trusted relationships with many US Government agencies, and we anticipate David to build on his success through his leadership of the combined business. We would also like to take this opportunity to thank Pete Hoene, whose leadership has resulted in SES GS achieving outstanding growth rate of over 30% in just the last five years. We wish him all the best in his well-earned retirement.”
“I am excited to join SES GS and honored to lead the combined team where we will be delivering best-in-class solutions and state-of-the-art multi-orbit satellite networking capabilities,” said David Fields, President and CEO of SES GS. “SES GS will be significantly expanding its differentiated value proposition for the US Government, with a trusted multi-operator network integration and service management solutions. The breadth of our capabilities, now spanning both connectivity and integration, allows for building, managing and supporting the most advanced satellite networks solutions for our US Government customers.”
“The DRS GES business is well-respected by its customers and within the satellite communications (SATCOM) provider services market, and we are very pleased with the agreement reached with SES,” said Bill Lynn, CEO of Leonardo DRS. “While the DRS GES business has flourished, Leonardo DRS has shifted its portfolio focus, and selling it now makes the most business sense.”
