Speedcast to Acquire UltiSat and Create New Government Subsidiary
Acquisition of UltiSat Extends Speedcast Remote Communications Leadership into Government Sector
Washington DC, USA, July 24, 2017 – 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 USD$100m, 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 Organisations (IGOs) and Non-Governmental Organisations (NGOs). The new division strengthens Speedcast’s position in the Government and NGO sectors, and complements 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’s portfolio. Speedcast’s scale and global network will enable us to provide expanded services and coverage for UltiSat’s customers around the world.”
UltiSat CEO Mohammed G. Abutaleb will lead the newly-formed Government subsidiary that will be focused on providing communication solutions and professional services to 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 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.
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