Astroscale US is addressing the GEO satellite life extension market with the acquisition of Effective Space Solutions R&D (ESS), developers of a Space Drone programme for satellite servicing.

Specifically, the Denver-based U.S. unit of the Japanese parent company, Astroscale Holdings, has announced it is acquiring the IP, certain members of staff and other assets of the Israeli satellite life-extension and servicing company.

Self-described as the “market leader in securing long-term orbital sustainability”, the acquisition makes Astroscale the only company solely dedicated to on-orbit services across low-earth (“LEO”) and geostationary (“GEO”) orbits, it claimed.

“The world now relies on space-based services, and the COVID-19 pandemic only intensifies that reliance,” said Nobu Okada, Founder & CEO of Astroscale. “Our purpose at Astroscale is to enable space sustainability, and satellite life extension represents a massive leap in our ability to fulfill that purpose. We welcome the Astroscale Israel team and look forward to realizing our vision with them.”

The company says that life extension and other on-orbit satellite services could generate more than $4 billion in revenues by 2028, with GEO satellites often costing more than $200 million to deploy. The business model is to highlight the value of servicing, repairing or upgrading such satellites rather than just replacing them.

“Imagine if rather than spending hundreds of millions of dollars to replace a GEO satellite, you could affordably extend the life of that satellite in orbit — that is the opportunity we welcome today with our outstanding new colleagues and capabilities,” said Ron Lopez, President and Managing Director of Astroscale U.S.

“Astroscale is known for blazing trails in on-orbit debris-removal services in LEO, and now Astroscale U.S. will do the same for satellite life extension in GEO. We are eager to start serving commercial operators, the U.S. government and partner governments around the world, all as a proud part of the U.S. space community.”

Astroscale U.S. has created a new subsidiary, Astroscale Israel Ltd, which will be headquartered in Tel Aviv. The division of operation is that Astroscale U.S. will focus on clients’ satellite servicing needs, including those of the U.S. government. Astroscale Israel, meanwhile, will serve as the company’s satellite servicing R&D group for life extension of GEO satellites. These provide critical communications, navigation and national security services.

“Our remarkable engineering team has been pioneering the on-orbit servicing market for the past several years,” said Arie Halsband, founder and CEO of ESS, who upon the closing of the transaction will serve as managing director of Astroscale Israel.

“We share with Astroscale a similar vision and strategy for how our technology and platform could become a logistical solution for commercial and government GEO satellites, and beyond. Astroscale’s acquisition of ESS technology is a testimony to the viability of our work, and we are thrilled to join the Astroscale team.”