Inmarsat plc, provider of global mobile satellite communications services, & RigNet, Inc. global provider of managed remote communications solutions to the oil and gas industry, agree a wide-ranging strategic transaction involving the appointment of RigNet to distribute Inmarsat’s Global Xpress and L-band services to the energy sector & the sale of Inmarsat’s retail energy business to RigNet.
The main points of the strategic partnership:
• Inmarsat and RigNet sign long-term distribution agreement for Global Xpress and L-band services
• RigNet signs significant 4-year Global Xpress capacity pre-purchase
• RigNet acquires Inmarsat’s retail energy operations
Under the terms of the agreement, RigNet will become a key Global Xpress distribution partner for the global energy sector and will offer Global Xpress and L-band services to RigNet’s growing customer base. In connection with the appointment, RigNet has entered into to a significant 4-year Global Xpress capacity pre-purchase.
To further enhance the strategic value of the partnership, Inmarsat has agreed to sell to RigNet its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit, for a total consideration of US$25 million. The sale will include Inmarsat’s microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners; its VSAT interests in Russia, the UK, the US and Canada, its telecommunications systems integration business operating worldwide, and its retail L-band energy satcoms business.
RigNet, based in Houston, Texas, provides managed remote communication services in over thirty countries on six continents, covering over 1,100 oil and gas related sites ranging from drilling rigs to production facilities and energy vessels. Rupert Pearce, Inmarsat’s Chief Executive Officer, said “We are excited about this partnership as it enhances the strategic positioning of both companies as we seek to address the communications needs of the global energy sector together.