The combination of rising defence budgets in Europe and heightened global geopolitical tensions provides a backdrop for sponsor interest in the region’s spacetech firms.

Bridgepoint led the way last year with the acquisition of Danish anti-drone player MyDefence, which uses satellite-enabled comms. The private equity firm flagged plans to support the company’s research and development (R&D) and expand its production.

European spacetech businesses have been particularly successful in raising funds recently.

Examples include The Exploration Company, which raised USD 160m in November; and Earth-observation specialist ICEYE, which closed an extension worth USD 65M on an earlier funding round to raise USD 93M.

Auri Aittokallio, Mergermarket’s head of Nordics and assistant editor, joins Dealcast host Julie-Anna Needham to discuss why a new space race between the US and China is igniting deal flow in Europe.

• · How will increased spending by members of the North Atlantic Treaty Organisation (NATO) impact companies in Europe?
• · What is driving a modest recovery in M&A volumes in the sector?
• · If the trajectory continues, what kind of deals will we be likely to see?

All this and more in this week’s Dealcast