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
 


People & Company News

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

MN100: Conrad Shipyard

The Company: Conrad Shipyard was established in 1948 and is headquartered in Morgan City, Louisiana. The company designs, builds and overhauls tugboats, ferries,

Marine Electronics

26 Hours of Information Recovered from El Faro's VDR

A group led by the U.S. National Transportation Safety Board (NTSB) has gathered information from the recovered voyage data recorder (VDR) of sunken cargo ship

e-Navigation Underway (North America) 2016

e-Navigation and the Gulf Area: meeting information needs where blue water, brown water and port facilities interact   San Jacinto College and the Seamen’s Church

Ocean Signal, AMI Marine Unveil E101V Float-Free EPIRB

Marine communications specialist Ocean Signal and VDR manufacturer AMI Marine will introduce a new float-free EPIRB with integrated voyage data recorder (VDR) memory

News

MV WERFTEN, Foreship Sign Design Agreements

MV WERFTEN signed a letter of intent with the engineering company Foreship in Stralsund today. The agreement includes parts of the basic design as well as design,

Rockland Scientific to conduct Victoria Turbulence Observation Retreat

Building on series of international training workshops in Brazil, Chile, France, Poland, Vietnam and the UK, Rockland Scientific brings the next turbulence measurement

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Communication

26 Hours of Information Recovered from El Faro's VDR

A group led by the U.S. National Transportation Safety Board (NTSB) has gathered information from the recovered voyage data recorder (VDR) of sunken cargo ship

USCG Evaluates Comms Equipment in Alaska

Coast Guard Research and Development Center evaluates state-of-the-art communications equipment and Next Generation Incident Command System in Alaska   At nearly 663,

Connected Ships, Smart Data, Cybersecurity to Feature in SHIPPINGInsight

Ship connectivity, smart data and cybersecurity will be central themes on the agenda at the fifth SHIPPINGInsight Fleet Optimization Conference & Exhibition. The

Mergers & Acquisitions

Hapag-Lloyd Shareholders Okays Merger with UASC

Hamburg-based ocean carrier Hapag-Lloyd said its shareholders approved all items on the agenda at Annual General Meeting, mainly the  share capital increase needed

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

Hapag-Lloyd: UASC Merger Benefits to show in 2017

German container shipping line Hapag-Lloyd expects to reap a third of targeted annual synergies of $400 million from the planned merger with Arab rival UASC already next year,

 
 
Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction 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: 0.1206 sec (8 req/sec)