Shares of Globalstar (NYSE:GSAT) skyrocketed around 40% in premarket trading Friday after the satellite services provider announced an expansion of its deal with Apple (NASDAQ:AAPL).

As part of the agreement, Apple will invest an additional $1.1 billion in upfront infrastructure prepayments to expand satellite service capacity.

The tech giant will also buy 400,000 Class B shares in Globalstar for $400 million, representing a 20% equity interest in the new satellite network. The deal includes the right to buy back the units under certain conditions.

These investments will back the creation and deployment of a new satellite constellation and the expansion of ground infrastructure, all of which will be owned and managed by GlobalStar.

Under the terms of the deal, Apple will make upfront payments for services, while GlobalStar retains all revenue from both terrestrial and satellite services and dedicates 85% of its network capacity to Apple.

GlobalStar projects that its total annual revenue will more than double compared to 2024 annualized levels during the first full year following the launch of the expanded satellite services.

The company plans to host an investor day in December to share further details on its business strategy.

Apple previously announced a $450 million investment in U.S. infrastructure in November 2022 to support the launch of its Emergency SOS texting feature via satellite.

To facilitate this service, Apple provided GlobalStar with $252 million as an advance payment to cover satellite manufacturing, launch, and other associated costs for the constellation supporting Emergency SOS, introduced with the iPhone 14.

Initially available in the U.S. and Canada, the feature expanded to most of Western Europe in December 2022, with availability now also in Japan, New Zealand, and Australia.

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