PARIS — Spanish information and defense technology provider Indra has purchased the 49 percent of IndraEspacio it did not already own fromof France in an all-cash transaction valued at 39.2 million euros ($50.2 million), Madrid-based Indra announced Sept. 10.
The deal gives an implied value of 80 million euros to IndraEspacio, which specializes in satellite ground systems and reported 2009 revenue of 70 million euros. IndraEspacio has 24.4 million euros in cash on hand, Indra said.
“This transaction allows Indra to strengthen its position in the space market, in which it has been operating for 25 years with its own technology,” Indra said in a statement. “This market maintains long-term growth expectations based on the increase of satellite communications demand, the development of new applications in navigation and Earth observation and the relevant investment programs posed by emerging countries — characteristics that make it attractive for Indra.”
Spain has been one of the fastest-growing space markets of the 18-nation European Space Agency () in recent years as successive Spanish governments have increased their spending in ESA. Most of these funds return to Spain in the form of ESA contracts to local industry.
Spanish government officials have warned in recent months that Spain may need to reduce its space spending as the nation copes with a financial crisis.