SpaceX Seeks to Expand Starlink’s Constellation Through The Acquisition

Swarm Technologies has been acquired by SpaceX, assisting in the growth of the company's Starlink internet service. Swarm wrote on August 6th in a Federal Communications Commission filing, that they would become “a direct wholly-owned subsidiary of SpaceX upon consummation of the Proposed Transaction.” 

SpaceX tends to create its own in-house systems, which makes the transaction rare. Swarm is a competitor for SpaceX, but a small one, which makes the value of the acquisition unclear. 

With 120 tiny SpaceBEE satellites currently in orbit, the expertise and intellectual property Swarm brings to the table can be beneficial for SpaceX. Included in the deal, Swam will transfer control of its satellite and ground station licenses to SpaceX.

The SpaceBEE satellites are, according to Swarm, “the smallest commercially operational satellites in space,” measuring in at 11 by 11 by 2.8 cm, creating savings on cost of launch. Swarm, founded in California in 2016, offers ultra low-bandwidth data services using these small satellites. 

Despite an unauthorized launch in 2018, according to PitchBook, the last fundraising round was completed in January 2019, at a $85 million valuation. Products include the Swarm Tile, $119, which is “Ideal for asset tracking, relaying sensor data, and industrial IoT applications,” according to the company website. The Swarm Eval kit, $499, can “send messages or GPS position through Swarm’s space network from anywhere on the planet,” and the monthly cost for the data plan is $5.

SpaceX’s Starlink aims to provide internet into rural areas and has nearly 100,000 beta users. 

FMI: https://swarm.space/our-technology, www.spacex.com