KVH Buys Virtek Communications for $6.5 Million
[Satellite TODAY 09-10-10] KVH Industries has acquired Norwegian software company Virtek Communications, which specializes in the development and deployment of commercial maritime middleware, for $6.5 million in cash, KVH announced Sept. 8.
Virtek’s current management and team will continue to operate as a discrete unit of KVH while integrating technology, development and sales into KVH’s overall strategic initiatives.
Virtek’s middleware and CommBox system are designed to help commercial fleets and vessel owners manage the data transmitted to and from their vessels over different satellite communications services, such as KVH’s own mini-VSAT Broadband or Inmarsat FleetBroadband. Virtek has sold its CommBox system to more than 700 vessels owned by 50 different shipping companies primarily based in Scandinavia and Northern Europe. Currently, Virtek anticipates 2010 revenues to be in the range of $2 to $3 million.
In a statement, KVH CEO Martin Kits van Heyningen said the acquisition aims to leverage Virtek’s technology to sell and expand its mini-VSAT Broadband service within the maritime market. “The capabilities offered by Virtek’s CommBox technology complement and expand the comprehensive satellite communication concept that is at the heart of the TracPhone V7 and mini-VSAT Broadband solution. The integration of this powerful middleware technology will strengthen our competitive position in the maritime broadband marketplace, enable us to offer a wide range of value-added functionality to customers, and provide a path to enhance the efficiency and versatility of our mini-VSAT Broadband data communications network.”
The acquisition is subject to normal closing procedures and adjustments and is expected to conclude in the next few weeks.