Apple dedicated about $1.5 billion to satellite tv for pc communications firm Globalstar to fund the enlargement of iPhone companies, the businesses disclosed in a securities submitting on Friday.

The tech large’s take care of Globalstar contains $1.1 billion in money, of which $232 million will go towards the satellite tv for pc firm’s present debt, and a 20% fairness stake. The deal is anticipated to shut on Tuesday.

Apple has already been spending lots of of tens of millions for Globlastar companies, which enabled the 2022 rollout of iPhone emergency satellite texting.

It’s one in all a number of efforts within the direct-to-device, or D2D, satellite connectivity market — which gives service to unmodified gadgets resembling smartphones straight from area — with different initiatives underway from SpaceX, AST SpaceMobile, Iridium, Lynk and EchoStar.

Globalstar inventory jumped as a lot as 36% in Friday buying and selling from its earlier shut at $1.05 a share.

In the filing, Globalstar famous that it’ll proceed to allocate about 85% of its community capability to Apple.

The brand new funds will enable Globalstar to buy new satellites and increase its floor infrastructure. Globalstar at present operates 31 satellites and has already ordered as many as 26 satellites to replenish and improve its constellation in low Earth orbit.