AST SpaceMobile to acquire global S-Band spectrum rights for $64.5 million

MIDLAND, Texas - AST SpaceMobile (NASDAQ:ASTS), a $17.56 billion market cap space technology company, announced Tuesday an agreement to acquire global S-Band spectrum priority rights held under the International Telecommunication Union (ITU), in a transaction valued at $64.5 million. According to InvestingPro data, the company currently trades above its Fair Value, reflecting strong investor optimism about its space-based cellular network ambitions.

The acquisition would provide the company with access to up to an additional 60 MHz of mid-band satellite spectrum capabilities in the 1980-2010 MHz and 2170-2200 MHz frequency ranges for use in low Earth orbit.

According to the press release, the transaction will be paid through a combination of stock or cash at the company’s election, with $26 million due at closing and the remaining $38.5 million as deferred consideration, partially tied to performance-based milestones. The company appears well-positioned to handle this investment, with InvestingPro data showing a strong current ratio of 10.62 and more cash than debt on its balance sheet.

"With these new spectrum priority rights, we will be in a position to bring services in S-Band to targeted markets around the world," said Abel Avellan, Chairman and CEO of AST SpaceMobile.

The company stated that the acquisition would complement its existing global 3GPP cellular spectrum strategy and planned L-Band spectrum strategy in the U.S. and Canada. AST SpaceMobile indicated that the expanded spectrum access could enable peak data transmission speeds of up to 120 Mbps.

The transaction is expected to close during the second half of 2025, subject to customary closing conditions. UBS Securities LLC is serving as financial advisor to AST SpaceMobile on the deal.

AST SpaceMobile is developing what it describes as the first space-based cellular broadband network designed to work directly with standard smartphones. The information in this article is based on a company press release statement.

In other recent news, AST SpaceMobile announced the successful closing of a $575 million convertible senior notes offering, which includes the full exercise of an additional $75 million in notes. This financing move boosts the company’s balance sheet to over $1.5 billion in pro forma cash as of June 30, 2025. The notes, due in 2032, come with an effective conversion price of $120.12 per share, aided by a capped call hedge. Additionally, AST SpaceMobile had previously announced plans to offer $500 million in convertible senior notes, with an option for an additional $75 million, aimed at qualified institutional buyers. The company also intends to repurchase up to $135 million of its existing convertible senior notes and offer Class A common stock to participating noteholders. Proceeds from these offerings will be used to fund the note repurchases and other corporate purposes. These developments reflect AST SpaceMobile’s strategic financial maneuvers to strengthen its position in the market.

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