KVH Industries Acquires Headland Media

Marinelink.com
Monday, May 13, 2013

KVH Industries, Inc. announced that it has acquired Headland Media Ltd., a media and entertainment services company. Headland Media is a provider of commercially licensed news, sports, movies and music content that they sell in the maritime, hotel and retail markets.



"The acquisition of Headland Media supports our strategic vision of extending our maritime broadband service to also include delivering premium content to vessels," said Martin Kits van Heyningen, KVH's chief executive officer. "We've captured a leading market share in the maritime VSAT market for one-to-one connectivity, and are now rolling out a new, highly efficient, low-cost multicasting capability that we believe will create significant growth opportunities for Headland Media's content by eliminating the time and cost of physically delivering DVDs to vessels. For KVH's mini-VSAT Broadband service, Headland Media's premium content offers us a great opportunity to create exciting new services that will help our customers keep their crews happy, and in the process help us differentiate our service and increase our ARPUs."



With extensive experience in the licensed content business, U.K.-based Headland Media has 115 employees, and offices in the U.K., Europe, the U.S., India and the Philippines. Headland Media has established relationships with content providers and a customer base of 9,600 vessels, 1,700 hotels, and 1,700 retail outlets receiving their various services. In 2012, Headland Media generated revenue of $12.2 million, of which approximately 85% was derived from annual subscription-based services. During that same period, the gross profit margin was almost 78%. Speaking of the acquisition and the opportunities ahead, Mark Woodhead, CEO of Headland Media, remarked, "We're excited to be part of the KVH family and to work with our new colleagues in developing the next generation of onboard entertainment services for ships at sea. The trend towards digital delivery of movies, news and sports clips has been apparent to us for several years. When we discussed KVH's capabilities, there just seemed to be a natural fit between their maritime VSAT service and our news, sports, and entertainment content."



Headland Media provides television shows, premium movies, sports, news channels and music for exhibition in commercial locations, which include ships at sea. KVH's capabilities to multicast data in the background during network idle times, and cache, manage, and distribute data onboard vessels using its Integrated CommBox Modem (ICM) will serve as key enabling technology for Headland Media's services. Headland Media's broad content range, which KVH intends to deliver over the mini-VSAT Broadband network, will also enable KVH to bring Internet Protocol television (IPTV) technology to the maritime market.



Mr. Kits van Heyningen concluded, "We see this acquisition as a great start to KVH's new initiative to bring our customers the same high-quality multimedia content they enjoy onshore, but have usually been unable to receive over their maritime satellite service because of either prohibitively high costs or protocol blocking associated with service providers' fair use policies. We believe that KVH's capabilities will help Headland Media grow sales of its services, and that having news, sports, and premium movies available on our mini-VSAT Broadband network will help our sales efforts as well."



The $24.0 million transaction is anticipated to be accretive to KVH earnings per share in 2013. The company financed the transaction from its cash on hand and proceeds from its existing credit facility.
 


KVH is holding a conference call live at 10:30 a.m. EDT today to discuss this announcement. To listen, call phone number +1 719-325-2494 (passcode 3965100) or you may access the call through the company's website at
investors.kvh.com. Listeners are welcome to submit questions pertaining to this announcement to [email protected] The audio archive and an MP3 podcast will also be available on the company website within three hours of the completion of the call.

 

www.minivsat.com

Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Zamakona, Finnish GS-Hydro Ink Deal

The presentation ceremony of the Finnish multinational leader in water services GS-Hydro, new partner of Zamakona Yards in Canarias was held yesterday (January 29th at 7 p.

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

Marine Electronics

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

Kongsberg Expands Louisiana Office, Training Facility

Kongsberg Maritime has purchased approximately 5.2 acres for new construction on an 82,980 sq ft office and training facility. Construction on the James Business

USCG Updates Rules for Arrival/Departure Notices, AIS

Final rule on vessel requirements for Notices of Arrival and Departure and Automatic Identification System published in Federal Register   U.S. Coast Guard (USCG)

Communication

Directorate Changes at Fastnet

Fastnet, the UK and Irish listed E&P company focused on near-term exploration and appraisal acreage in Morocco and the Celtic Sea, announces certain management

Transas: The Bridge to Tomorrow

Transas was founded in 1990, by a group of former navigators and engineers, who at that time envisioned ways in which computers could revolutionize maritime safety, communications and security.

Oman to Implement Maritime Communications Network

Oman to roll out the national maritime communications network along its lengthy coastline soon, says Al-Madakhel Investment that has been tasked with design, construction

Mergers & Acquisitions

Adani Group Revamps Businesses

Adani Enterprises Limited together with its subsidiaries Adani Ports and Special Economic Zone Limited (“APSEZ”) and Adani Power Limited (“APL”) today announced

HII Acquires Engineering Solutions Division

Huntington Ingalls Industries (HII) has acquired the Engineering Solutions Division of The Columbia Group, a designer and builder of unmanned underwater vehicles

ISS Palumbo UK Acquires Union Transport

ISS Palumbo UK, part of maritime services provider Inchcape Shipping Services (ISS), has acquired U.K. freight forwarding specialist Union Transport (Newcastle) Ltd.

Entertainment

Naval EXPO Coming to Washington

For the first time ever, the general public will be admitted free to the Naval Future Force Science and Technology EXPO general exhibit hall Feb. 4-5 where they

31st Edition of Cruise Shipping Miami

Cruise Shipping Miami 2015 is gearing up to offer the most comprehensive and robust roster of panel discussions featuring the industry's most knowledgeable and experienced executives.

South Korea Mulls Maritime Study with North Korea

South Korea would propose a joint research with North Korea to develop marine resources and ocean tourism, reports Korea Herald.  South Korea’s Maritime Affairs

 
 
Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2172 sec (5 req/sec)