By Chris Forrester
Alexis Sainz (Partner, Hogan Lovells) moderated the SmallSat Europe session, which examined the current patterns in M&A activity in Europe and whether changes in the US would impact European activity.
Karl Schmidt (Managing Director, KippsDeSanto & Co.) explained that some 800 deals had been processed over the previous couple of years of which just 140 had ‘space’ in the deal. For 2024 some 7% last year mentioned ‘space’ in terms of M&A, but for this year that has grown to 22% of a European buyer or seller. From a European M&A perspective there’s a great deal to be optimistic about, but there’s a degree of chaos in the US.
He also said that over the past few months there had been a major shift. He said there was once a reluctance to be involved in defense-related activity. That has changed, and now every VC wanted to be involved.
John Lusk (CEO, Spire Maritime) told delegates that commercial activity when combined with potential valuable IP in their portfolios could be attractive. But cautioned that frequently, a government investment comes with constraints and caveats not least in hiring local staff.
Francois Chopard (CEO, Starburst Ventures) said space activity in Europe is really led by government activity. He said the ESA-backed IRIS2 project was a case in point. But the recent geopolitical problems have seemingly encouraged France, German and Italy to start looking to invest in their own military support by satellite. Budgets are increasing, without a doubt, and the Ukraine conflict has issued an alert for all of Europe in terms of needs.
Swarnajyoti Mukherjee (Commercialisation Officer, Dir. Commercialisation, Industry & Competitiveness
European Space Agency – ESA) said that ESA was looking beyond helping develop space programmes. It had traditionally been helping with funding in R&D and this would grow. He touched on IRIS2 which he said was going to generate good business, and some of which would generate help from ESA.