Speedcast International Limited (ASX: SDA), ta provider of highly reliable, fully managed, remote communication and IT solutions, has announced it has completed the previously announced 100% acquisition of UltiSat in a cash transaction of up to USD 100m, payable over two years and subject to ongoing financial performance, the company said.
The closing is effective as of 1 November 2017.
The acquisition of UltiSat accelerates Speedcast´s push into the government vertical, a global market of USD 4.8B per annum, and gives Speedcast critical mass in the vertical with over USD 100M in revenues globally. Increasing demand for connectivity and a new investment cycle will underpin long-term growth in the government vertical, supported by technology enhancements and satellite capacity availability.
The acquisition of UltiSat extends Speedcast´s position serving government and Inter-Governmental Organization (IGO) customers at a time when government spending is expected to rise. UltiSat is a provider of remote communications and high-touch professional services in these sectors, in particular the US Government. This complements Speedcast´s existing government related activities in Australia, Asia, Europe and Latin America.
UltiSat will become a wholly owned subsidiary of Speedcast International Limited. UltiSat´s CEO Mohammed G. Abutaleb will lead the UltiSat subsidiary as well as the newly formed Global Government division.
Speedcast International utilizes an extensive worldwide footprint of local support, infrastructure and coverage to design, integrate, secure and optimize networks tailored to customer needs. With differentiated technology, an intense customer focus and a strong safety culture, Speedcast serves more than 2,000 customers in over 140 countries via 39 teleports, including offshore rigs and cruise ships, 10,000+ maritime vessels and 4,500+ terrestrial sites.