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 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 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 creates a fourth pillar of growth for Speedcast and further strengthens Speedcast’s position as the global leader in remote communications and IT services with unique scale and capabilities,” said Speedcast CEO Pierre-Jean Beylier. “UltiSat’s customers will benefit from our combined breadth of facilities, our engineering expertise and our unique satellite network across multiple frequency bands. Furthermore, Speedcast will be able to leverage UltiSat’s experience and innovative solutions for our existing customers.”
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 leading provider of remote communications and high-touch professional services in these sectors, in particular the US Government. This compliments Speedcast 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.