Back to news

October 27, 2020 | International, C4ISR

Space situational awareness company to be bought for $700 million

WASHINGTON — Ansys, an engineering simulation company, plans to purchase a Pennsylvania-based satellite tracking and modeling firm for $700 million, according to an Oct. 26 announcement.

Ansys is preparing to acquire Analytical Graphics Inc., which performs software development for simulation, modeling, testing and analysis tools for a number a uses, though perhaps the 30-year-old company is most well known for modeling and tracking satellites on orbit to provide key data on orbital mechanics that helps operators avoid collisions and safely operate their equipment.

That level of space situational awareness is likely to become even more valuable for satellite operators as space becomes more crowded. Experts predict as many as 10,000 new satellites to be launched over the next five years, driven by the proliferated constellations being developed by private businesses and the U.S. Defense Department. At the beginning of 2020, there were about 2,000 active satellites on orbit.

Recent near misses have further highlighted concerns over space debris. In January, two defunct satellites nearly collided in low Earth orbit. While there wasn't much concern about damage to the two satellites, which had long ceased operations, a collision between the two would have sent debris scattering throughout space, posing a hazard to active satellites.

The Inter-Agency Space Debris Coordination Committee — a group of space agencies from around the world — say such incidents are likely to occur every five to nine years. But as space becomes more crowded, experts worry the likelihood of a collision will increase.

Ansys plans to add AGI's space situational awareness tools to its simulation portfolio, allowing customers to simulate their entire mission — from the chip level all the way to a satellite's orbital mechanics and connection to ground stations.

“Ansys' acquisition of AGI will help drive our strategy of making simulation pervasive from the smallest component now through a customer's entire mission,” Ansys President and CEO Ajei Gopal said in a statement. “It will also expand the use of simulation in the key aerospace sector, where the stakes can be at their highest levels. We are excited to welcome the expert AGI team — and to expand the reach of their world-class technology to industries outside of aerospace, including for autonomy and 5G applications.”

AGI was already an Ansys partner, but the latter hopes the acquisition will drive new aerospace and defense customers to its mission-based simulation services.

“In the three decades since our founding, we have continuously invested in our technology to create and advance digital mission engineering,” AGI co-founder and CEO Paul Graziani said in a statement. “We are thrilled to become part of Ansys so we can dramatically extend the reach of our world-class products and help more customers accomplish their critical missions.”

The acquisition is expected to close before the end of 2020, with Ansys paying 67 percent of the $700 million price tag in cash and issuing stock for the remaining amount.

https://www.c4isrnet.com/industry/2020/10/26/space-situational-awareness-company-to-be-bought-for-700-million/

On the same subject

  • UK Defence Secretary sets out ambitious Defence Prosperity Programme

    March 15, 2019 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

    UK Defence Secretary sets out ambitious Defence Prosperity Programme

    Defence Secretary Gavin Williamson has reaffirmed his commitment to growing Defence's contribution to UK economic growth, setting out a new package of measures to drive productivity and innovation in the sector. In July 2018, Philip Dunne MP published a review of the economic value of Defence, highlighting the crucial role the sector plays in supporting over 260,000 jobs and contributing on average £7bn in exports each year. The Ministry of Defence invested £18.9bn with UK industry in 2017/18, equating to £290 per resident, which supported 115,000 jobs across the country. Ahead of today's Prosperity Conference, bringing together leading defence industry partners in the Manufacturing Technology Centre in Coventry, the Defence Secretary has announced: £500k investment from the Defence Innovation Fund for a pilot programme with industry to further strengthen the international competitiveness and productivity of the UK defence sector. A joint programme supported by Invest Northern Ireland and the Department for Business, Energy and Industrial Strategy to pilot a Defence Technology Exploitation Programme (DTEP) in Northern Ireland, worth an expected £1.2m in Research and Development investment. A commitment to working with the Welsh Government on the potential for an Advanced Manufacturing Research Institute alongside the Defence Electronics and Components Agency (DECA) in North Wales to cement the region as a centre of excellence for innovation. Defence Secretary Gavin Williamson said: These announcements demonstrate the progress we are making in our commitment to boost Defence's contribution to national prosperity. Our world-class defence sector operates at the very forefront of innovation, supporting 260,000 jobs and increasing economic growth throughout the UK. The MOD is playing a central role in the Government's Modern Industrial Strategy and prosperity agenda, ensuring the UK remains a world-leader in defence technology in the years to come. Secretary of State for Wales Alun Cairns said: The Ministry of Defence plays a crucial role in Wales and supports thousands of jobs across the country. It is Welsh expertise which ensures the Armed Forces are equipped with the latest technology, and DECA Sealand and companies like AerFin are proving Wales' credentials as a global leader in aviation technology. The UK Government is committed to ensuring this trend continues, and through the Industrial Strategy aims to invest in key industries and infrastructure in Wales to boost productivity and support businesses in creating well-paid jobs. In recognition of the need to improve the quality of data on the UK defence sector available to decision-makers by stimulating greater academic involvement in the area, the Defence Secretary also announced: The proposal to create a Joint Economic Data Hub with industry, sitting within the UK Defence Solution Centre and overseen by a new independent advisory panel, to collect and aggregate economic data from across the defence sector. A commitment to sponsor an international Defence Economics Conference at Kings College London later this year, as the first of a series of events to develop understanding of the significant economic value of Defence. Earl Howe outlined these proposals in more detail at the Defence Prosperity Conference today, before taking part in a panel event with senior industry and government officials. The initiatives build on the Philip Dunne report commissioned by the Defence Secretary, entitled ‘Growing the Contribution of Defence to UK Prosperity', which has been widely welcomed by Government and Industry. Full article: https://www.gov.uk/government/news/defence-secretary-sets-out-ambitious-defence-prosperity-programme--2

  • Northrop CEO: To beat China, US must step up investments in advanced computing

    June 28, 2021 | International, C4ISR

    Northrop CEO: To beat China, US must step up investments in advanced computing

    Chinese advances in the areas of artificial intelligence and processing data are "particularly problematic," says Northrop's chief executive.

  • Lockheed Martin May Go Shopping if Defense Budgets Fall Next Year

    July 22, 2020 | International, Aerospace

    Lockheed Martin May Go Shopping if Defense Budgets Fall Next Year

    July 21, 2020 | By John A. Tirpak If defense spending goes down in the coming year—expected because of large COVID-19 bailout packages—it could be an opportunity for Lockheed Martin, company President and Chief Executive Officer James D. Taiclet said July 21. In a second-quarter results call with investors and financial reporters, Taiclet—in his first such call after succeeding Marillyn A. Hewson in the job—said the company isn't betting on defense budgets to go up or down. But Lockheed is sitting on so much cash—nearly $8 billion—it could go shopping for other companies in distress if budgets fall, he said. “If there is a downturn, we're going to look for silver linings that may be there,” Taiclet said. Given the company's strong backlog and balance sheet, “there could be opportunities for us to act in a period where asset prices are depressed, for things we may want to bring into the company.” Acquisition targets “we really wanted ... might be even more available at attractive prices.” He did not discuss large possible acquisition interests, and only broadly mentioned looking at small companies able to build Lockheed's vertical integration in some technology areas. Taiclet declined to speculate on whether budgets will rise or fall. “We're just getting the company ready for either scenario, frankly,” he said. “If it's stable or slightly rising, ... we know how to handle that. But if it's declining, we're planning for that, too.” In case of a downturn, he's asked business area managers to do “a ‘Red Team' kind of exercise ... We would offer our customers ... ‘this is what we think you should do with our products and programs for extending'” the life of existing platforms. With a $150 billion backlog in hand, though—a new company “high water mark,” Taiclet said—“it's going to be two to three years” before any defense budget cuts “actually go into the defense industrial base production lines, so we have time to work with the customer ... They can have their contingency plan and we're behind them 100 percent.” Taiclet said international customers may also see budget declines, but doesn't expect Lockheed to be hit hard by that. While some requests for proposals are “moving to the right,” the planned in-service dates of prospective customers are not, he noted. Taiclet and Kenneth R. Possenriede, vice president and chief financial officer, said the company expects 90 total new F-16 orders from Taiwan and another country; C-130s for Indonesia; Aegis systems for Japan; and MH-60R helicopters for India, as well as increasing orders for missile defense systems. They also said the chief competitors to the U.S. are spending lavishly on defense systems and the threat is not diminishing, despite COVID. China is “aggressive and ... aspirational,” Taiclet said, while Russia is “back in the game,” making strategic investments in long-range systems to make up for its diminished ground forces. Production of the F-35, Lockheed's marquee aeronautics program, will likely be 40 percent for foreign users in the coming years, Possenriede said. Of the aeronautics division's $9 billion in orders, $7 billion is accounted for by the F-35, with a backlog of 411 airplanes. Taiclet noted that Lockhed has hired 9,000 new employees since the COVID-19 pandemic began, and is seeking to hire 3,000 more in this calendar year. https://www.airforcemag.com/lockheed-martin-may-go-shopping-if-defense-budgets-fall-next-year

All news