SpaceX acquires IoT satellite service company

SpaceX said it has agreed to acquire Swarm Technologies, a small satellite service company that provides Internet of Things (IoT) services. Following the merger, Swarm transfers its existing satellite and terrestrial broadcasting licenses to SpaceX and becomes a SpaceX subsidiary.

Prior to the FCC filing, the deal had not been made public, and neither company had an opinion on the acquisition. Swarm has a small number of 120 satellites, mainly for sectors such as agriculture, energy industry and logistics, and provides low-speed, two-way communication. It started in February and has just started operating the satellite network, but if SpaceX gets this business, Swarm can gain a competitive advantage over its competitors and operate at a lower cost than before. In addition, synergies between SpaceX development technology and launch service can be expected.

SpaceX is launching a large number of small communications satellites for its Starlink initiative, its own satellite service. Related information can be found here.