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

Otto Marine's Financial Health on the Mend

Michael See Kian Heng, Group Executive Director of Singapore-based offshore vessel owners & shipbuilders Otto Marine, says that his company reported revenue of US$512.

Ultra-deepwater Drillship 'Maersk Valiant' Delivered

Maersk Drilling advises that its second new drillship, 'Maersk Valiant', has been delivered from the Samsung Heavy Industries (SHI) shipyard in Geoje-Si, South-Korea.

Miami Tugboat Oil Spill: Coast Guard Respond

The US Coast Guard says that its crewmembers are responding to a fuel spill in the vicinity of Government Cut in Miami, following a leak discovered aboard the 95-foot tugboat 'Neptune'.

News

KVH Precision Sensors for Geodetics' Inertial Navigation Systems

KVH Industries, Inc.,  a leading manufacturer of high performance fiber optic-based inertial sensors and gyros has entered into a strategic partnership with Geodetics Inc.

Search resumes for missing in S. Korean ferry disaster

South Korean coastguards and navy divers resumed their search on Thursday for nearly 280 people still missing after a ferry capsized in what could be the country's

POSH may raise $311 Mln in Singapore IPO

PACC Offshore Services Holdings (POSH) could raise at least S$388.27 million ($311 million) after pricing its initial public offering near the bottom of the pricing range indicated earlier,

Communication

A New Standard in Marine Communications

KVH provides and Harvey Gulf employs possibly the most sophisticated on-board SATCOM and related service package on the water. That’s no accident.     If quality service,

KONGSBERG to deliver C4I CORTEX for the Combatant Craft Medium Mark One

KONGSBERG will provide the C4I infrastructure solution for the CCM Mk 1 production contract, awarded to Oregon Iron Works,    Inc. (OIW) in Clackamas, OR on February 10th, 2014.

KVH will bring FIFA to Mariners

KVH Industries, Inc., (Nasdaq: KVHI) has come to an agreement with IMG Media to distribute video content of the 2014 FIFA World Cup ™ to merchant ships. KVH will

Mergers & Acquisitions

WireCo Acquires Netherlands’ Endenburg

Company will open new crane distribution center WireCo WorldGroup Inc., the world’s leading producer and marketer of specialty steel ropes and high synthetic ropes,

Hapag-Lloyd, CSAV Merger Finalized

Hapag-Lloyd and CSAV binding agreement signed / In return for contributing its container business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd

Colfax's Acquisition of Victor Technologies Complete

ESAB has announced that Colfax Corporation has completed the previously announced acquisition of Victor Technologies Holdings, Inc. Victor is a preeminent global manufacturer of cutting,

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators 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: 0.1352 sec (7 req/sec)