VCs exit Newtec in €250m trade sale

STE will pay €250m on a cash-free and debt-free basis. The transaction value equates to 14.6x Newtec's EBITDA and 2.7x revenue for the 2018 financial year.

The acquisition of Newtec is intended to add intellectual property, products and market access to STE's offering. STE plans to continue to invest in Newtec in Belgium to position it to be the group's European centre for its satellite communications business. The combined business is expected to produce approximately S$200m in value creation arising from revenue and cost synergies.

The transaction is subject to regulatory approval in Austria, the US and France, and is expected to complete in the second half of 2019.

Previous funding
PMV and SmartFin Capital each acquired a 26% stake in the company in 2017. Newtec generated sales of €72m in 2016.

Company
Newtec is a technology provider in the satellite broadcast segment with a strong presence in the European satellite communications market. The company has a broad portfolio of satellite communication technologies and hardware such as modems, terminals and hub systems complemented by associated installation and maintenance services. It employs 400 people and was founded in 1985. The company is based in Sint-Niklaas, Belgium.

People
Singapore Technologies Engineering – Vincent Chong (president, CEO); Ravinder Singh (president, electronics sector).
Newtec – Roald Borré (chairman, board of directors).

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• Exits
• Benelux
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• Trade sale
• Belgium