Harwell: Orbital Optics in £3.5m deal

Harwell Science and Innovation Campus in Oxfordshire is set to become the European centre of a major international organisation, and with it bring investment into the UK economy, thanks to the innovative, world-leading science of space spin-out company Orbital Optics.

The Science and Technology Facilities Council (STFC), through its commercialisation company CLIK, and the Rainbow Seed Fund have sold their shares in the spin-out company to its majority shareholder MacDonald, Dettwiler and Associates (MDA). Orbital Optics is being acquired in return for a share in future revenues, which could be worth up to £3.5 million to the selling shareholders.

Orbital Optics develops and sells state-of-the-art, compact and affordable space cameras that are capable of producing high quality images. Their optical payload products are based on the proven technology developed by the Space Science and Technology Department of STFC’s Rutherford Appleton Laboratory. The acquisition of the company by Canadian-based MDA, which is well known for the development of the robotic systems that are part of the International Space Station and the Space Shuttle, will bring important investment in satellites, space and terrestrial robotics from overseas into the UK economy.

Tim Bestwick, chief executive of STFC’s commercialisation company CLIK, continued: "The STFC is committed to using its research facilities and scientific expertise to support and develop exciting and innovative companies. It’s vital that we look for opportunities where we can transform scientific and technological advances into successful new products and services that will benefit both the economy and wider society.

“I'm delighted that MDA have completed their purchase of our spin-out company. They can provide vital expertise to propel Orbital Optics into the next stage of growth. Their impressive background in commercial space technology makes them the ideal organisation to lead the further commercial exploitation of the innovative space cameras developed at the Rutherford Appleton Laboratory.”

Orbital Optics was originally spun out by CLIK in early 2006 with initial funding from the Rainbow Seed Fund and other investors. In March 2007 international space and information solutions company MDA acquired a majority shareholding in Orbital Optics. The organisation’s initial investment enabled MDA to add significant optical payload capability to its existing radar and comsat payloads, thus enhancing its turnkey satellite mission offerings. Following its acquisition of the remaining shares, Orbital Optics is now wholly owned by MDA and will be rebranded as MDA Space and Robotics Ltd. MDA will continue to collaborate with STFC’s Space and Science Department at Rutherford Appleton Laboratory as it expands and develops its operations.

Mag Iskander, president of MDA’s Information Systems Group, said: “This is a solid first step in our strategy to address the UK and ESA market needs. From there we plan on building a larger presence based on our expertise, cooperation with STFC’s Space Science Department at Rutherford Appleton Laboratory and Europe’s major primes.”

John Ellis, chief executive of Orbital Optics, added: “I am absolutely delighted by the purchase of the remaining shares in Orbital Optics by MDA. It is an important step that creates a new MDA Information Systems company in the UK. It will allow us to develop and broaden our activities to cover a range of products in addition to the high resolution cameras on which Orbital Optics was established.”

Dr Andrew Muir, investment director at the Rainbow Seed Fund, continued: “We are delighted by the acquisition of Orbital Optics by MDA, which promises to be a good home for the company. We were amongst the first investors in Orbital Optics having always believed in the potential of their cutting edge technology. We are happy to have helped the company over the last three years and we will continue helping early technology companies turn great science into commercial reality.”