- The merger of Lynk Global and Omnispace will combine Lynk’s satellite technology with Omnispace’s S-band spectrum
- SES will provide access to its multi-orbit network and globally deployed ground infrastructure
- Leading the merged company will be Lynk CEO Ramu Potarazu
In an attempt to speed their efforts in the direct-to-device (D2D) satellite cell phone market, Lynk Global and Omnispace are merging, with SES becoming a major strategic shareholder.
The proposed new entity consists of Omnispace bringing its spectrum to the table while Lynk is contributing its satellite technology platform. Luxembourg-based SES already is an investor in both U.S. companies.
“We now have the right mix of technology, spectrum and leadership to extend mobile connectivity where and when it’s needed most,” said Lynk CEO Ramu Potarazu in a statement. “This merger will enable us to accelerate our efforts in delivering seamless, reliable messaging, voice and data services – serving MNOs, as well as consumer, commercial and industrial vehicles, and government and utility sectors worldwide.”
Once the transaction closes, which is expected late this year or early next year, Potarazu will be CEO and Omnispace President and CEO Ram Viswanathan will be chief strategy officer. The companies didn’t reveal the name of the combined entity.
The merger will leverage Omnispace’s 60 MHz of S-band and its high-priority spectrum filings with the International Telecommunication Union (ITU) for D2D services. Omnispace’s S-band footprint covers more than 1 billion people across the Americas, Europe, Africa and Asia.
Lynk’s technology enables backward-compatible satellite-delivered mobile voice and messaging services and it will be able to leverage the S-band to offer data, voice and messaging services to new smartphones and IoT devices, including automotive platforms.
Lynk already has deals with more than 50 mobile network operators (MNOs) worldwide and its low Earth orbit (LEO) network is enabling intermittent messaging and alert services for MNOs in a handful of island nations. The first to launch a service using its satellite-to-phone technology was PNCC in Palau.
SES, which has geostationary Earth orbit (GEO) and medium Earth orbit (MEO) satellites but doesn’t own LEO assets, will be able to access new LEO capabilities that the merger of Lynk and Omnispace will offer.
“This merger pairs an industry-leading global spectrum portfolio with a disruptive cost-effective satellite technology platform – accelerating deployment and delivering significant value to our commercial and government customers,” said SES CEO Adel Al-Saleh in a statement.
In July, Lynk ended an agreement with special purpose acquisition company SLAM Corp., a company founded by former MLB player Alex Rodriguez. At the time, Lynk said the termination of that agreement and resolution of litigation related to it would put it in a better position to pursue a broader set of strategic opportunities.
What’s next for Lynk, Omnispace?
TMF Associates Principal Tim Farrar said all this comes as there’s competition for 2 GHz spectrum in the EU. It’s unknown when those licenses will be awarded, but SES and Lynk are among the contenders.
“Omnispace has not done very much for a long time,” he said. “Lynk has been sort of well behind in terms of its licensing position.”
He expects there will be a lot of filings made with the FCC and other regulators while these companies gear up to build a new satellite constellation and raise the money to do it.
“This is obviously a first step,” he said. “Now we’ll have to see what they plan to build and what the announcements are going to be.”