Communications specialist teams up with Elon Musk’s SpaceX
Filtronic, which designs and makes products for the aerospace, defence, telecoms infrastructure and space markets, has entered into a strategic partnership and commercial agreement with SpaceX.
Owned by Elon Musk, SpaceX is one of the world’s most valuable start-ups. It designs, manufactures, launches and operates the world’s most advanced rockets and spacecraft.
The strategic partnership involves Leeds-based Filtronic supplying 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 worth $19.7m/£15.8m to supply E-band SSPA modules, scheduled for delivery in FY2025.
Further orders are expected to support deployment of SpaceX’s Starlink constellation, which provides high-speed, low-latency high-speed internet to users around the world.
As part of the partnership, Filtronic is issuing 21,712,109 warrants to SpaceX across two tranches.
It will enable SpaceX to subscribe for up to a maximum of 10% of Filtronic’s existing share capital, with such warrants expected to vest, on a variable basis, with full vesting of the warrants once around $60m/£48m of orders have been placed by SpaceX.
Richard Gibbs, chief executive officer, of Filtronic, said: “We are happy to enter into this important Strategic Agreement with SpaceX, a market leader in Low Earth Orbit 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.”
Mike Nicolls, SpaceX’s vice president of Starlink Engineering, added: “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.”
