apple Approximately $1.5 billion pledged to satellite communications company global star to fund expansion of iPhone services, the companies said in securities filings on Friday.
The technology giant’s deal with Globalstar includes $1.1 billion in cash, of which $232 million will go towards the satellite company’s current debt and 20% equity. The transaction is expected to close on Tuesday.
Apple has already spent hundreds of millions of dollars on its Globlastar service, which will enable the rollout of iPhone emergency satellite text messages in 2022.
This is one of several efforts by SpaceX in the direct-to-device (D2D) satellite connectivity market (providing services to unmodified devices such as smartphones directly from space), along with other projects underway. AST Space Mobile, iridium, link and echo star.
Globalstar shares rose 31.4% in Friday trading, closing at $1.38 per share.
Globalstar said in its filing that it will continue to allocate approximately 85% of its network capacity to Apple.
The new funding will allow Globalstar to purchase new satellites and expand its ground infrastructure. Globalstar currently operates 31 satellites and has already ordered as many as 26 satellites to replenish and upgrade its fleet in low Earth orbit.
