SINGAPORE Technologies Engineering's (ST Engineering) electronics arm has signed an agreement with DSO National Laboratories (DSO) to set up a joint venture (JV) company.
This is DSO's third joint venture with ST Engineering to date and will see ST Engineering making a planned investment of US$3 million for a 51 per cent stake in the JV company, with the remaining 49 per cent to be held by DSO.
The company, named ST Engineering Geo-Insights, looks to offer analytics, information products and value-added services based on satellite imagery to address growing global demand for timely insights that enable better and faster business decisions. It also aims to tap emerging new space technologies to pursue potential business opportunities for low cost small satellites, or smallsat constellation design, development, manufacturing and operation.
In a statement, ST Engineering disclosed that the setup of this company is not expected to have any material impact on the consolidated net tangible assets per share and earnings per share of ST Engineering for the current financial year.
Ravinder Singh, president, electronics, ST Engineering, said: "Leveraging the complementary strengths of both organisations, we will offer advanced geospatial analytics to the global market and exploit the vast possibilities in smallsat constellation for commercial applications. This joint venture will enhance the space eco-system in Singapore as we work with industry partners to commercialise geospatial services and new space technologies."
Cheong Chee Hoo, CEO, DSO National Laboratories, said: "We share a common vision to support the growth of Singapore's space industry. DSO is happy to be able to contribute our research and systems engineering competencies, as well as geospatial analytic capabilities to the success of this vision."
Shares for ST Engineering last closed at S$3.78 per piece at 10.34am on Thursday.