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Clyde Space joins AAC Microtec

(22 December 2017 - Clyde Space) Clyde Space is delighted to have joined the Swedish space tech company AAC Microtec to create a global-leading company in the high-growth market of small and nanosatellites.

The combination creates a foundation for accelerated growth, creating long-term opportunities for space industry development and job creation in Scotland, Sweden and other priority markets. It will create opportunities to expand the workforce and capture market share in a fast-growing market.

The two companies' market positions, technology, product ranges and customer bases are complementary to a great extent. The opportunities for cross-fertilization of R&D activities and cross-selling of products are significant, and the case for going to market with joint offerings is strong.

Clyde Space's strong brand name in the "New Space" market, leading position in the CubeSat segment, high level of expertise, entrepreneurial spirit, and commercial success will form a cornerstone of the AAC group. On its part, AAC will add strong management and business development capabilities, well-developed international sales channels as well as its high-reliability heritage, state-of-the-art technology, and a range of reliable and flight-proven products in the somewhat larger "small satellite" segment. Furthermore, AAC is a listed company, with direct access to capital markets.

The combined company will offer high-reliability technology and products in a segment ranging from 1U CubeSats to 500 kg satellites. Hence, the combined company will be able to serve a greater market consisting of quality- and reliability-conscious customers, including commercial players with well-funded satellite constellation programs, as well as commercial and institutional customers demanding reliable, flexible and cost-efficient products for advanced small satellite missions.

Craig Clark, Founder and CEO of Clyde Space, comments: "We are very excited to join the internationally acclaimed and highly competent AAC team. AAC's complementing operations, advanced technology know-how, well-developed corporate structure and direct access to capital markets provide a great platform for the further development and growth of Clyde Space as well as the AAC group's business as a whole. With our combined resources, know-how and pools of highly competent individuals, we will jointly be able to boost the creation of innovative technology and products, and continue to lead the way in the most commercially interesting segments of the satellite market."

Alfonso Barreiro, CEO of AAC, comments: "Together with Clyde Space, we can offer a complete range of advanced and cost-efficient solutions that meets increasing customer demand for flexibility, reliability and prolonged satellite longevity. We will have advanced R&D, production and testing facilities in Uppsala and Glasgow, and effective sales channels to commercial and institutional customers across the globe. Our joint R&D capacity will be unique in our segment, enhancing our capability to offer state-of-the-art technology and supporting our strategy to develop robust products based on open architecture platforms to increase flexibility, scalability, and efficiency. I'm really looking forward to work closely together with Craig Clark and his team to drive commercialization and to lead the third industrial revolution in our part of the space technology market."

Rolf Hallencreutz, Chairman of AAC, adds: "We are very excited to welcome the talented and highly innovative Clyde Space team. Together, our companies secure a leadership position in the CubeSat market and can claim a strong position in the high-reliability small satellite segment. We also strengthen the foundation for continued corporate development, profitability improvements and accelerated top-line growth, organically as well as through additional M&A activities in the UK, Sweden and other markets."

Mr. Craig Clark, Clyde Space's founder, entrepreneur and CEO will join the AAC Management Team and Mr. Will Whitehorn, the Chairman of Clyde Space, is going to be proposed as a Board member of AAC at the EGM. Mr. Whitehorn, a former President of the human spaceflight enterprise Virgin Galactic, holds positions as Chairman of several privately held UK-based companies and as Deputy Chairman of Stagecoach Group PLC, Senior Non Executive Board member of GVC Holdings PLC, and Non Executive Director of Purplebricks Group PLC, all publicly traded on the London Stock Exchange.

This newly formed organisation will exploit the natural synergies between the two companies and combine strengths and complimentary customer offering which will enable the new entity to expand organically and increase their global footprint. This new dynamic company will have a strong presence in Europe, the US and Asia, this coupled with fast innovation cycles and larger pools of both resources and engineers will excel capabilities in addressing the market, positioning our next generation company as the dominant player in this expanding market.