[Satellite TODAY Insider 09-24-12] AsiaSat has sold its entire interest in SpeedCast to private equity firm, TA Associates, the company announced Sept. 24. SpeedCast has been a strong performer recently, and has grown significantly in recent times. Last year in an interview with Satellite News, Pierre-Jean Beyler, CEO, SpeedCast said the operator had doubled its revenues between 2007 and 2010. Also, when Satellite News spoke to Beylier this year, he said once again that the company expects to have double-digit revenue growth this year.
It has been a company on the rise for a while, and in particular, has a strong play in the maritime segment, and in recent times has targeting Africa as a great growth region for the company. African expansion has been at the heart of SpeedCast’s strategy in recent times. In 2010, SpeedCast opened a new regional headquarters in Dubai in efforts to replicate its Asian infrastructure in Africa and offer the same level of service and support to customers in both regions. Beylier admits this has been a key strategic focus for the company.
Since its inception in 1999, SpeedCast has used AsiaSat’s satellite capacity for the provision of satellite-based broadband services and is currently offering managed network services in more than 30 countries throughout Asia, the Middle East and Africa. Following the conclusion of the transaction, AsiaSat will continue to be a significant supplier of satellite capacity and technical services for SpeedCast.
The acquisition could prove a good one for TA Associates, particularly if SpeedCast can maintain its strong revenue growth in recent years. “As a profitable and rapidly growing company, SpeedCast ideally fits TA’s investment profile. As one of the largest VSAT operators serving Asia, the Middle East and Africa, and one of the few with a multi-country footprint, SpeedCast has the opportunity to become the leading provider in a vibrant and burgeoning market. TA looks forward to collaborating with SpeedCast management to execute a strategy of organic and acquisitive growth,” Edward F. Sippel, Managing Principal – Asia Pacific at TA Associates, said in a statement.
Sippel was appointed to lead TA’s Asia operation in May of this year, and has wasted little time in investing in SpeedCast. SpeedCast represents TA’s eighth investment in the region.
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