Global satellite and terrestrial connectivity provider Emerging Markets Communications (EMC) has signed a definitive merger agreement to acquire maritime satcoms specialist MTN Communications (MTN).
Financial details were undisclosed but the companies…
Global satellite and terrestrial connectivity provider Emerging Markets Communications (EMC) has signed a definitive merger agreement to acquire maritime satcoms specialist MTN Communications (MTN).
Financial details were undisclosed but the companies stated that the merger would create one of the largest independent providers of satellite connectivity services for both land-based sites and maritime vessels worldwide.
The transaction is subject to regulatory review and other customary conditions, and is expected to close by the second quarter of 2015.
Backed by media and communications focussed private equity firm ABRY Partners, EMC has been looking to expand its energy and maritime connectivity services business and in February snapped up Norwegian offshore communications specialist General Industry Systems (GIS) for an undisclosed sum.
Its last acquisition prior to GIS was more of a vertical one, acquiring VSAT hardware manufacturer STM, which in turn made it the largest VSAT provider in Africa.
This latest deal, though, is on a far larger scale and reflects the wave of consolidation taking place in the satcoms services market. In March, ITC Global was bought by Panasonic to fit alongside its Panasonic Avionics division, while Speedcast has been on a bolt-on acquisition spree, snapping up seven smaller rivals since it was bought out by private equity firm TA Associates in late 2012
Meanwhile, Airbus is currently in the process of selling its commercial satcom services business, mainly the former Vizada business, with bids believed to be in and a summer 2015 agreement expected.
Like ITC – Panasonic, scale is a key factor in the EMC and MTN merger, creating an organisation that will cater to 1,600 vessels and more than 8,000 land-based customer sites in remote regions. The combined company will predominantly serve the maritime, energy and telecoms markets, where demand continues to grow.
Commenting on the transaction, Abel Avellan founder and CEO of EMC said: “Our vision is to create the next generation mobility platform offering the most reliable, secure and cost-effective connectivity solutions for people and businesses on-the-move and in far reaching places and the acquisition of MTN makes this vision a reality.”
Mark Walter, president and chief operating officer of MTN added: “Our combined talent, networks and product set will deliver capabilities and scalability no other provider can offer.”
