SSW Acquires Avonline Broadband, Gains New $15.6 Million Investment

An Avonline Broadband satellite dish and modem. Photo: Avonline.

[Via Satellite 07-07-2016] Satellite Solutions Worldwide (SSW) is acquiring U.K. satellite broadband provider Avonline Broadband for an initial consideration of $13 million, using existing cash resources and a new financing agreement with Business Growth Fund (BGF). The acquisition of Avonline Broadband increases SSW’s U.K. and global customer base to approximately 17,000 and 35,000, respectively. BGF’s investment totals $15.6 million, consisting of a $12.5 million unsecured loan note, and a $3.1 million unsecured convertible loan note converting at $11.70 per share. The fund also granted an option to acquire 74,019,915 new ordinary shares at $9.75 per share. Capital repayments commence in May 2021.

SSW plans to use the BGF investments to acquire Avonline Broadband in full, and repay in full a $2.6 million April 2016 unsecured existing loan note. The acquisition is expected to provide economies of scale within operations, marketing, logistics and sales and help the company reach its target of having 100,000 users by the end of financial year 2017.