Speedcast Announces Buyout
Speedcast announces buyout; also announces appointment of new Board Director and Chairman.
SpeedCast Ltd. announced the buyout of SatComms Australia, a satellite solutions provider in Australia. The closing of the transaction is subject to regulatory approval. The acquisition will further consolidate SpeedCast’s leadership position in the Asia-Pacific region and provide SpeedCast with an expanded presence in Australia. SpeedCast also announced the appointment of Michael Malone as a nonexecutive Board Director and the appointment of John Mackay as Chairman of the Board.
SatComms Australia is a specialized provider of mobile and fixed satellite solutions in the Australian market and in the Asia-Pacific region. The company services customers in the natural resources, maritime and government sectors. SatComms is based in Queensland, Australia with a teleport and operations center in Henderson, Western Australia.
With this acquisition, SpeedCast will further extend its stronghold in the Australian market with new points of presence and infrastructure in Western Australia and Queensland and a strengthened portfolio of mobile satellite services.
SpeedCast will be even better positioned to serve its growing number of natural resources customers and support their mission-critical communications in Australia and globally.
SatComms' strength in mobile satellite solutions will augment SpeedCast's current L-band offering, a key technology for offshore and exploration customers. Satcomms’ significant presence in Queensland, Australia will enhance SpeedCast's ability to support customers in this important region, a hub for gas exploration and production. The SatComms teleport in Western Australia will provide flexibility and network customization capabilities to SpeedCast's natural resources customers. With two fully owned teleports in Australia, one in Adelaide and one in Perth, SpeedCast will be able to offer the highest levels of redundancy including site and satellite diversity. The acquisition follows the opening of SpeedCast's new office in Perth in February, highlighting the Company's commitment to the Western Australian market.
“With the SatComms acquisition, SpeedCast expands it presence and its commitment to the Australian market, and marks our third acquisition in Australia in just 18 months,” said Pierre-Jean Beylier, CEO of SpeedCast. “SatComms uniquely complements SpeedCast’s leadership in the VSAT market with great strength in mobile satellite services, extensive teleport infrastructure in Western Australia, and a sales and engineering presence in Queensland. There are significant synergies between the two companies, which will further enhance our ability to deliver customized turnkey solutions to our customers in Australia and beyond.”
Joining SpeedCast, SatComms will now be able to offer its customers a wider portfolio of products and services and better serve its customers’ needs worldwide. SpeedCast will partner with SatComms’ outstanding management team and employees to continue to provide best-in-class services to SatComms customers, while augmenting SpeedCast’s own team and expertise. SatComms will complement SpeedCast’s current Australian infrastructure, adding additional points of presence in this strategic market.
“We look forward to joining SpeedCast, a leader in satellite communications services in Asia-Pacific,” said Andrew Burdall, CEO of SatComms. “With SpeedCast’s experience and infrastructure, we believe that SatComms will have the opportunity to drive further growth and advance our commitment to providing our customers with reliable and efficient solutions.” SatComms’ COO, Piers Cunningham, added, “We see a great opportunity to offer our customers a broader range of satellite services and solutions, global satellite coverage and worldwide engineering support.” Mr. Burdall and Mr. Cunningham will remain with the newly merged entity and take on leadership roles within SpeedCast.
SpeedCast also announced the appointment of a new Independent Director – Michael Malone, former Chief Executive Officer of iiNet Ltd. (IIN.AX), and the appointment of a new Chairman of the Board – John Mackay, current SpeedCast Board Member and former Chairman and Chief Executive Officer of TransACT Communications Pty Ltd. Mr. Mackay takes over the Chairman role from Edward Sippel, Managing Director for TA Associates, who will continue to serve on the Board.
Michael Malone is the former Chief Executive Officer of iiNet Ltd., the second largest provider of ADSL in Australia, where he served as CEO and Executive Director for over 20 years. Malone was a founder of iiNet and was responsible for its development since 1993, including over 40 acquisitions over two decades. Malone led the IPO of iiNet in 1999 through to that company’s position today as a leader in its industry with a market capitalization of over $1 billion. He was the 2011 Ernst and Young Entrepreneur of the Year for Australia and is widely recognized for his achievements in the industry. Malone is based in Perth, Australia.
John Mackay AM, has been Chairman and Chief Executive Officer of two major utilities based in Canberra for 15 years, and was Chief Executive Officer and Chairman of TransACT Communications Pty Ltd, a leading broadband communications company in Australia. He serves on the Board of Directors of various organizations including: the Canberra Investment Corp. Ltd., the Little Company of Mary Health Care, and the Canberra Raiders. Mackay recently retired as the Chancellor of the University of Canberra. He has been awarded the Order of Australia and was chosen as Canberra Citizen of the Year. Mackay has been on SpeedCast's board since December 2012 and is based in Canberra, Australia.