Sydney-based satellite communications provider Speedcast has acquired US-headquartered Globecomm for US$135 million (A$184 million) from investment firm HPS Investment Partners in an effort to expand its government business and overall global footprint.
Globecomm provides remote communications and multi-network infrastructure to government, maritime and enterprise sectors in more than 100 countries.
Speedcast said the acquisition complements its 2017 purchase of US-headquartered Ultisat, whose strengths also lie in government.
“This acquisition of Globecomm is fully in line with our strategy to consolidate our industry
and thus build competitive advantages based on scale and capabilities,” Speedcast chief executive Pierre-Jean Beylier said.
“I am excited to have the Globecomm team joining Speedcast. They will strengthen our innovation capabilities with new solutions and strong engineering experience, as well as enhancing our system integration propositions.”
The acquisition is expected to be completed in the fourth quarter of 2018, subject to the completion of closing conditions and regulatory approval.
Speedcast also released its financial results for the half year ending 30 June, turning a profit of US$540,000 compared to a year-over-year loss of US$5 million in the same period in 2017.
Underlying EBITDA is also up 14 percent to US$60.4 million, compared to last year’s US$53.2 million, while revenue is up 24 percent to US$304.9 million from $246.3 million in 2017.
Its maritime, enterprise and government divisions all posted revenue growth for the period, cushioning a 17 percent decline in its energy division.
“We are pleased with the organic growth we achieved in the first half of 2018 across maritime, government and enterprise,” Beylier said.
“Disappointingly, the energy sector suffered from delays in the market recovery, but we remain bullish about our ability to significantly benefit from the energy sector’s recovery, which we believe will be stronger than previously forecasted.”
Speedcast expects underlying EBITDA for the full 2018 financial year to be between US$135 million to US$145 million, and that energy revenue will be down 10 percent compared to the 2017 full year.