Europe-focused satellite broadband services provider Satellite Solutions Worldwide (AIM: SAT) has made its first acquisition following its listing on London’s AIM exchange in May.
The company, which operates under the Europasat brand, has acquired…
Europe-focused satellite broadband services provider Satellite Solutions Worldwide (AIM: SAT) has made its first acquisition following its listing on London’s AIM exchange in May.
The company, which operates under the Europasat brand, has acquired the customer base of Irish satellite broadband provider Onwave for approximately €900k (US$989k). The transaction will be financed through its existing cash resources of about £5m (US$7.7m).
As part of the deal, Onwave will also provide support services for a period of 12 months to ensure a smooth transition of the customer base. The acquisition is expected to be immediately earnings enhancing.
Founded in 2008, Onwave has more than 2,300 residential and business customers. Satellite Solutions Worldwide cites data from market research consultancy Point Topic that estimates there are over 300,000 Irish households with less than 2 Mbps broadband connections, making it a large potential market for satellite broadband.
Satellite Solutions Worldwide listed on AIM in May 2015 following a reverse takeover by a special purpose acquisition vehicle called Cleeve Capital. On completion, the company made a statement to the stock market saying that one of the principal reasons behind the acquisition and admission was to help it to pursue a buy and build strategy.
It had already been in advanced talks and conducted due diligence on a number of potential acquisition targets prior to reverse takeover with Onwave one of these targets.
Satellite Solutions Worldwide’s CEO Andrew Walwyn commented: “Onwave perfectly illustrates our strategy of identifying and acquiring existing operators in key European markets thereby being a leading consolidator in the market place. With many further opportunities in the pipeline, we are confident this is the first of a number of acquisitions and strategic alliances over the coming months.”
Strand Hanson was Satellite Solutions Worldwide’s financial adviser on the transaction.
