NBN Co has acquired the services arm of ASX-listed satellite company Speedcast International for an undisclosed sum.
Speedcast Managed Services helped build NBN Co’s satellite network, providing design, integration and commission of a high-throughput satellite system.
NBN Co was its sole customer throughout its whole run, providing more than 50 beams and a comprehensive terrestrial infrastructure.
Speedcast in early 2018 was awarded a 10-year, $184 million contract from NBN Co to design, build and manage enterprise satellite services through subsidiary Speedcast Managed Services.
As part of the sale, the Master Equipment and Services Supply Agreement (MESSA) between both companies signed in 2018 would be cancelled.
Speedcast’s remaining business will continue working as an NBN Co retail service provider, specifically for its business satellite service.
In an ASX announcement, Speedcast president Joe Spytek said, “We are proud of what our partnership with NBN Co has delivered and look forward to continuing our relationship and providing many more Australian businesses with essential connectivity.”
“This sale provides both parties with considerable benefits, as NBN Co looks to bring delivery and project management of its Business Satellite Service in-house and we work to finalise our recapitalisation process.
“We congratulate NBN Co on their purchase and look forward to continue working together on new initiatives.”
The deal is Speedcast’s latest move to help itself emerge out of Chapter 11 bankruptcy protection in the US, which the company filed for in April 2020. The company last month secured a $500 million equity investment from Centerbridge Partners.