New Skies Satellites B.V. has entered into an agreement to sell its Australian subsidiary, New Skies Networks PTY Ltd., to Multiemedia Ltd., a provider of next generation technology and communications services based in Australia, New Skies announced Aug. 25.

New Skies Networks owns and operates two teleports in Adelaide and Perth, Australia. As part of the $10 million transaction, New Skies Satellites has agreed to purchase teleport services from Multiemedia. In turn Multimedia, currently a customer of New Skies Satellites through its Newsat satellite services division, has agreed to procure additional satellite capacity on New Skies’ NSS-6 satellite. Newsat currently provides satellite broadband services on NSS-6 in Australia and the Middle East.

“We are very pleased with the agreement with Multiemedia, a strong player in the Australia and Middle East satellite services sector,” Dan Goldberg, New Skies’ CEO, said in a statement. “Our decision to enter into this transaction is consistent with our successful strategy of delivering complete solutions to our customers by working with partner teleports, as opposed to wholly owned teleports, around the world. We are confident that Multiemedia will continue to provide the high level of services that New Skies Networks has always provided and we look forward to continuing our strong business relationship with them.

New Skies Satellites plans to use the proceeds from the transaction to reduce debt. The deal is expected to close in late October.