Acquisition of UltiSat Extends Speedcast Remote Communications Leadership into Government SectorSydney, July 24, 2017 AEST (ABN Newswire) - Speedcast International Limited (ASX:SDA), the world's most trusted provider of highly reliable, fully managed, remote communication and IT solutions, today announced it has entered into a definitive agreement to acquire UltiSat for a purchase consideration of up to USD100m, payable over 2 years and subject to the ongoing financial performance of the company. UltiSat is a leading 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.
"The acquisition of UltiSat extends Speedcast's position serving Government and NGO customers. UltiSat has built a really strong reputation providing remote communications and professional services to key customers, such as the U.S. Government and IGOs" said Speedcast CEO Pierre-Jean Beylier. "I am excited to have the UltiSat team joining Speedcast. Speedcast's scale, global network and unique support services capabilities will enable the combined Group to provide expanded services and coverage for UltiSat's customers around the world. Speedcast will also be able to leverage UltiSat's solutions and expertise to serve other governments globally with which Speedcast has existing relationships."
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 $5B market for government and military satellite communications.
"The UltiSat team is thrilled to join the Speedcast Group. Speedcast's scale and global capabilities will enable us to expand the portfolio of services we can offer to our customers and to pursue new opportunities. This is an exciting development for our employees and our customers and I look forward to taking our combined Government and IGO business to new heights over the years to come." said Mr. Abutaleb.
The transaction is expected to complete in Q4 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 is hosting an investor call at 1pm AEST this afternoon regarding the transaction. To register, participants can dial either of the numbers below to join the call, and quote the Conference ID number 5895 0036.
Speedcast's half year results are currently being finalised and under review by its auditors, and will therefore not be discussed on this call. Further details will be provided when Speedcast announces its half year results on 29 August 2017.
International dial-in numbers:
Australia (toll-free): 1800 123 296
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India: 1800 3010 6141
Japan: 0120 477 087
New Zealand: 0800 452 782
Singapore: 800 616 2288
United Kingdom: 0808 234 0757
United States: 1855 293 1544
Conference ID: 5895 0036
To view the UtiliSat Inc Acquisition Presentation, please visit:
About Speedcast International Ltd
Speedcast International Ltd (ASX:SDA) 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. 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. Speedcast supports mission-critical applications in industries such as maritime, oil and gas, enterprise, media, cruise and government. Learn more at Speedcast.
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