Europe's largest space company, EADS Astrium, will acquire British microsatellite manufacturer Surrey Satellite Technology Limited (SSTL).

In a deal announced on 7 April, EADS will pay the University of Surrey between £40 million and £50 million (between US$80 million and $100 million) for a majority stake in the company. Currently, the university holds an 80% share.

SSTL specializes in small satellites weighing between 10 and 100 kilograms. Its previous clients include nations such as Turkey and China, as well as the European Union, for whom it supplied the first satellite of Europe's Galileo Global Positioning System.

But the company has struggled to expand into larger markets such as the United States (see Nature 444, 804–805 ; 2006). The buyout will help growth, according to Martin Sweeting, SSTL's executive chairman. “This acquisition strengthens SSTL enormously while preserving our unique approach to space,” he says.