Inmarsat, the global provider of mobile satellite communications services, has announced that it is to acquire Globe Wireless for a total consideration of US$45m. The company plans to fund the acquisition from available liquidity.
Headquartered in Palm Bay, Florida, Globe Wireless is a US provider of value-added marine communications services to the shipping market. The company reported revenues of US$91m for the year ended June 30, 2013, and has an installed customer base of over 6,000 ships.
“This is a highly compelling transaction for Inmarsat,” says CEO Rupert Pearce. “Adding the Globe Wireless team will immediately bring material benefits, enabling a faster roll-out of XL, FleetBroadband and transition to GX in due course.
“We are also acquiring a skilled and established solutions development team that has been responsible for a market-leading portfolio of value added services”.
Inmarsat says the acquisition will allow the company to deliver significantly improved financial performance through synergies. According to Pearce, rapid take-up and a growing backlog for XpressLink had pushed Inmarsat near the limit of its existing engineering capability to meet the demand from channel partners and customers.
“Accessing this portfolio offers a truly exciting cross-selling opportunity for our channel partners and ourselves, across the entire Inmarsat installed maritime base,” adds Pearce. “This is a transaction that both accelerates our longer term strategic aims and can deliver meaningful contribution in the short term.”
The acquisition is expected to complete in January 2014, subject to regulatory and other approvals.