Inmarsat Acquires Globe Wireless, Plans to Expand Maritime Presence
[Via Satellite 12-17-13] Inmarsat has chosen to acquire the business and substantially all of the assets of Globe Wireless, a provider of value-added maritime communications services headquartered in Palm Bay, Fla.
By acquiring Globe Wireless, Inmarsat will be able to make a stronger entrance into the maritime market. Globe Wireless’ engineering team will expand Inmarsat’s installation capabilities and enable a faster roll-out of XpressLink (XL) and Global Xpress (GX) to the maritime market, both through its already established channel partnerships and direct to end-users. The companies have identified significant operational synergies, which are expected to deliver a material improvement in profitability within the first year.
“This is a transaction that both accelerates our longer term strategic aims and can deliver meaningful contribution in the short term,” Rupert Pearce, CEO, Inmarsat.
Inmarsat will acquire the business of Globe Wireless for a total consideration of $45 million and will fund the acquisition from available liquidity. In the twelve months ended June 30, 2103, Globe Wireless generated revenues of $91 million and currently has an installed customer base of more than 6,000 ships. Closing of the transaction is subject to certain regulatory and other approvals, which are expected to conclude in January 2014.