TAMPA, Fla. — Satellite operator Spire Global is selling its commercial ship-tracking business to an analytics provider to invest in other data markets and its hosted payload services.
Vienna, Virginia-based Spire Global said Nov. 13 it has reached a $241 million deal to sell maritime customer contracts to Kpler of Belgium, which would also get exclusive rights to sell ship-tracking data from the operator’s satellites to commercial entities and governments worldwide.
Spire Global would retain its satellites, technology, and other infrastructure following the transaction, which includes $7.5 million for services over 12 months, as well as its current maritime customers in the U.S. government.
The proceeds would help Spire Global pay off all its outstanding debt, around $100 million worth, giving the company more financial firepower for near-term growth opportunities across its weather, aviation, radio frequency geolocation, and space services markets.
“We are now even better equipped with the resources, technology and experience to serve governments and commercial clients to fulfill their missions,” Spire Global CEO Peter Platzer said in a statement.
Kpler CEO Mark Cunningham said the acquisition would materially improve its maritime analytics capabilities, which use space and terrestrial sensors to track AIS — Automatic Identification Systems — transponders required on all passenger ships and most ocean-going vessels above a certain tonnage.
“This will provide our clients with a clearer view of developments across maritime and commodity markets, to support better decision-making in a globally interconnected economy,” Cunningham said.
The companies expect to complete the transaction early next year.
The sale comes months after Spire Global agreed to pay a fee for a waiver to avoid default under its credit facility with Blue Torch Capital.
Spire Global is also continuing to review its accounting practices and procedures surrounding the timing of bookings under its space services business, where the operator hosts customer payloads on satellites built in-house.
The accounting review has delayed the submission of a 10-Q regulatory filing detailing finances for the three months to June 30, prompting a warning from the NYSE in August that Spire Global risked being removed from the stock exchange.
The NYSE has given Spire Global until Feb. 19 to submit the regulatory filing — and a 10-Q filing for the third quarter of 2023 that is also late.
Spire Global said in a recent update that it is continuing to progress through its accounting review while disclosing $40 million of new contracts during the three months to Sept. 10, marking a quarterly record for the company.
The operator started trading on NYSE in August 2021, joining a wave of space companies seeking more capital through mergers with publicly listed shell companies known as SPACs, or special purpose acquisition companies.
Spire Global shares closed up more than 14% to $13.45 Nov. 13 following the sale announcement.
