Cobham Satcom inked a deal for what it described as a strategic merger of one of its divisions and Gatehouse Satcom, with the aim of boosting backing for 5G non-terrestrial network (NTN) systems across a range of sectors.

The former positioned the move as a major advance in accelerating the satellite industry’s transition to standardised 5G connectivity and one which will help it serve the commercial, government, defence and direct-to-device (D2D) markets.

Terms of the transaction were not disclosed, though Cobham Satcom noted the entity being formed would become one of its subsidiaries and it would be the majority shareholder.

CEO Christophe Duret described the deal as an acquisition.

The entity is to be led by Gatehouse Satcom CEO Kenney Schmidt Christiansen.

Cobham Satcom provides RAN platforms and ground infrastructure, while Gatehouse Satcom specialises in software related to 5G NTN.

The business being formed is set to further develop “3GPP-compatible 5G NTN software”, which “Gatehouse Satcom has already proven in LEO, MEO and GEO” infrastructure, the Cobham Satcom division noted.

It plans to maintain existing products and expand “next generation 5G/6G NTN connectivity solutions” for clients providing services to the maritime, defence, IoT, enterprise and D2D markets across the globe.

Christiansen noted the deal with Cobham Satcom would provide “the scale and talent to accelerate our ambitions”.

“Together, we will continue developing world-class 5G NTN software and hardware for commercial, government and defence customers, now in an even stronger structure supported by Cobham Satcom’s operational scale and network expertise.”

Duret added the “acquisition creates significant strategic opportunities as the satellite communications industry undergoes rapid transformation”.

The deal is subject to regulatory approval.