apple Approximately $1.5 billion committed to satellite communications companies ring star To fund the expansion of iPhone services, the companies disclosed in a securities filing on Friday.
The tech giant’s deal with Globalstar includes $1.1 billion in cash, $232 million of which will be used to repay the satellite company’s current debt, and a 20% equity stake. The deal is expected to close on Tuesday.
Apple has spent hundreds of millions of dollars on the Globlastar service, which will enable the iPhone emergency satellite messaging service to be launched in 2022.
It’s one of several efforts in the direct-to-device (D2D) satellite connectivity market, which serves unmodified devices like smartphones directly from space, with other projects SpaceX has underway to AST space movement, iridium, Link and echo star.
Globalstar shares rose 36% in Friday trading from the previous closing price of $1.05 per share.
exist FilingGlobalstar noted that it will continue to allocate about 85% of its network capacity to Apple.
The new funding will allow Globalstar to purchase new satellites and expand its ground infrastructure. Globalstar currently operates 31 satellites and has ordered up to 26 satellites to supplement and upgrade its low-Earth orbit constellation.
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