SpaceX is going to acquire Swarm Technologies, scooping up the startup’s roughly 30 employees and its network of 120 tiny satellites. The deal is extremely rare for SpaceX, which normally manufactures its rocket and satellite hardware in-house or hires subcontractors.
It has been revealed that the acquisition plans in an August 6th filing with the Federal Communications Commission that requested approval to shift ownership of its satellite and antenna licenses to SpaceX. The merger agreement, in which Swarm will become a direct and wholly owned subsidiary of SpaceX, was inked on July 16th.
The acquisition of Swarm marks a rare business maneuver for SpaceX as it deepens its foray into the world of consumer electronics and claws its way out of a chasm of unprofitability with Starlink, with the hopes of eventually turning the network into a cash cow to fund Musk’s massive Starship launch system. It’s unclear, though, what specific opportunity SpaceX sees in Swarm to benefit its broadband network. A spokesperson for Swarm declined to comment on the deal, and SpaceX didn’t reply to a request for comment.
The acquisition is hoped to strengthen “the combined companies’ ability to provide innovative satellite services that reach unserved and underserved parts of the world,” Swarm wrote in the FCC filing. “SpaceX will similarly benefit from access to the intellectual property and expertise developed by the Swarm team, as well as from adding this resourceful and effective team to SpaceX.”
