Inmarsat to Acquire Globe Wireless

Posted by Eric Haun
Tuesday, December 17, 2013

Inmarsat, a provider of global mobile satellite communications services, announced the acquisition of the business and substantially all of the assets of Globe Wireless LLC. Headquartered in Palm Bay, Florida, Globe Wireless is a leading provider of value-added maritime communications services to the shipping market.

The acquisition of Globe Wireless is driven by multiple strategic benefits:
 

  • Access to a skilled engineering team that will significantly expand Inmarsat’s installation capabilities and enable a faster roll-out of both XpressLink (XL) and Global Xpress (GX) to the maritime market, both through its already well-established channel partnerships and direct to end-users;
  • The acquisition of a portfolio of industry-leading value-added services (“VAS”) for maritime customers that will jump-start Inmarsat’s ambitions to move beyond pure connectivity and offer solutions and managed services to the maritime market, both through its channel partners and direct to end-users, that will be relevant to both L-band and GX customers;
  • The immediate opportunity to offer the Globe Wireless VAS range to Inmarsat’s entire installed base of maritime customers, both through its channel partners and direct, enabling further ARPU(average revenue per user) growth that might otherwise have taken years to develop through in-house development of an equivalent product range; and
  • Significant operational synergies identified through immediate integration with Inmarsat’s maritime business unit, and which are expected to deliver a material improvement in profitability within the first year.


Rupert Pearce, CEO of Inmarsat, commented,"This is a highly compelling transaction for Inmarsat."

Pearce highlighted a range of important strategic benefits associated with the acquisition. These included the opportunity to swiftly deliver significantly improved financial performance through synergies. He said that rapid take-up and a growing backlog for XpressLink, had pushed Inmarsat near the limit of its existing engineering capability to meet the demand from our channel partners and customers.

Pearce continued, "Adding the Globe Wireless team will immediately bring material benefits, enabling a faster roll-out of XL, FleetBroadband and transition to GX in due course. We are also acquiring a skilled and established solutions development team that has been responsible for a market-leading portfolio of value added services".

Concluding, Pearce said, "Accessing this portfolio offers a truly exciting cross-selling opportunity for our channel partners and ourselves, across the entire Inmarsat installed maritime base. This is a transaction that both accelerates our longer term strategic aims and can deliver meaningful contribution in the short term.”

Frank Coles, President of Inmarsat Maritime, commented, “Globe Wireless has created a suite of products and value added services that are unequalled in the market today, and by combining this with our FB and GX services, we believe we can further enhance our position as the leading provider of services to the maritime customer."

Coles said that the team at Globe Wireless will bring a highly unique set of skills and abilities, ranging from software development, direct relationships with customers through a skilled sales team, and provide ‘touch the ship’ support and installation capabilities.

He continued, "We will be making these capabilities immediately available to our channel partners via our global network and wholesale support environment, strongly enhancing the Inmarsat Maritime proposition into the market".

Coles believes that through integrating these VAS, installation and support capabilities into the Inmarsat Maritime business unit, Inmarsat will be able to offer a completely unique managed service to its channel partners. He said, “Our purchase of Globe Wireless also removes the need for partners to invest the time, funds and other resources in duplicative R&D”.

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 be completed in January 2014.

inmarsat.com
 

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Wärtsilä Reports Healthy Ship Power Sector in Q1 2014

In its interim financial report January to March 2014 Wärtsilä notes healthy development in ship power and services offsetting challenges in power generation markets.

No Lift for Konecranes as Q1 2014 Profit Slips

Finnish crane maker Konecranes on Thursday reported a 32-percent fall in its core quarterly operating profit amid slow demand and tight competition. January-March 2014 operating profit,

GulfMark Offshore Records Highest Ever Q1 Revenue

Houston-based GulfMark Offshore President & CEO Quintin Kneen commented on his company's first quarter 2014 financial report: "We recorded our highest first quarter revenue ever,

News

Mitsui O.S.K. Ship Ready To Leave Chinese Port

Japanese shipping firm Mitsui O.S.K. Lines Ltd said on Thursday that its ship, the "Baosteel Emotion" 226,434 deadweight-tonne ore carrier, is ready to leave

Body Of Korean Boy Who Raised Alarm On Sinking Ferry Found

The body of a South Korean boy whose shaking voice first raised the alarm that a passenger ferry with hundreds on board was in trouble has been found, his parents believe,

UASC Introduces New Asia - Europe Network

UASC has introduced its new Asia – Europe Network with three new services (AEC1, AEC3, AEC4), and two enhanced services (AEC8, AEC9). These services will broaden

Communication

Body Of Korean Boy Who Raised Alarm On Sinking Ferry Found

The body of a South Korean boy whose shaking voice first raised the alarm that a passenger ferry with hundreds on board was in trouble has been found, his parents believe,

Boy Passenger Made Initial Distress Call from Sinking Ferry

The first distress call from a sinking South Korean ferry was made by a boy with a shaking voice, three minutes after the vessel made its fateful last turn. He

Harris Corp Awarded Huge Navy Satcom Contract

Florida-based Harris Corporation informs it has been awarded a US Navy potential US$133-Million broadband satellite communication terminal contract. Highlights:

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1300 sec (8 req/sec)