The spin-out company of the University of Surrey, Surrey Satellite Technology Ltd, is being sold to the European aerospace company EADS Astrium NV, in what is believed to be the largest ever cash realisation from the sale of a UK University spin-out company. The sale, which is subject to obtaining regulatory approval in a number of jurisdictions, will mean that the cash realised from this sale will be invested strategically in the University’s core activities of research, teaching and learning, and enhancing the student experience. The University will maintain a small holding in the company as a sign of good-will and as an indication of the University’s confidence in SSTL’s future, as part of the EADS Astrium group.
The decision to sell SSTL has been made at this time as it allows the company to grow even further, because funding for its future developments will be more readily available from its new parent company. The sale will strengthen SSTL as it guarantees its future as an independent brand and company in its current location with its current management team. Innovation and enterprise will continue to be encouraged as SSTL will be able to compete against its sister companies for contracts. The links between the University and SSTL will remain allowing the University to continue to share certain Intellectual Property with the company.
As part of this agreement the University will establishing a long-term strategic academic collaboration with EADS Astrium. This agreement will provide research funding to the Surrey Space Centre and the collaboration is of particular importance in further establishing Guildford as a centre of expertise in space technology.
It is envisaged that this move will enable the development of a space industry hub in the Guildford and South-east region benefiting the local economy and that of UK Plc. The region already has a strong presence in the aeronautical and space industries and on completion this sale will strengthen that presence further. A regional centre of expert knowledge and excellence will be firmly established which, in turn, will enable greater collaboration between different stakeholders and allow the region to benefit from the Government’s commitment to invest £33m in the UK space industry.
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