Speedcast International Limited (ASX: SDA), a provider of remote communication and IT solutions, has entered into a definitive agreement to acquire UltiSat for a purchase consideration of up to USDUSD 100 million, payable over two years and subject to the ongoing financial performance of the company, the company said.
UltiSat is a provider of remote communications and professional services to governments, in particular the US government, and to international government organizations (IGOs) and non-governmental organisations (NGOs).
The acquisition strengthens Speedcast´s position in the government and NGO sectors, complementing Speedcast´s government activities in Australia, Asia, Europe and Latin America.
UltiSat CEO Mohammed G. Abutaleb will lead the newly-formed government division at Speedcast that will be focused on providing communication solutions and professional services to Speedcast´s and UltiSat´s existing and new government and IGO customers, as well as driving new growth in the nearly USD 5 billion market for government and military satellite communications.
The transaction is expected to complete in the fourth quarter of 2017 subject to customary closing conditions, including regulatory approvals.
Speedcast was advised by Goodwin Procter LLP and Deloitte Global. UltiSat was advised by Pillsbury Winthrop Shaw Pittman LLP and Trinity Advisers.
Speedcast International is the world´s most trusted provider of highly reliable, fully managed, end-to-end remote communication and IT solutions. The company utilizes an extensive worldwide footprint of local support, infrastructure and coverage to design, integrate, secure and optimize networks tailored to customer needs.