Global satellite and terrestrial connectivity provider Emerging Markets Communications (EMC) has acquired its VSAT peer STM for an undisclosed sum.
The acquisition sees EMC purchase VSAT hardware manufacturer STM as well as its satellite connectivity…
Global satellite and terrestrial connectivity provider Emerging Markets Communications (EMC) has acquired its VSAT peer STM for an undisclosed sum.
The acquisition sees EMC purchase VSAT hardware manufacturer STM as well as its satellite connectivity services subsidiaries Global IP and Vodanet Brasil.
EMC would not comment on either the structure or the financial details of the acquisition, although it is expected to have been funded by ABRY Partners. The private equity firm bought a majority stake in EMC in late 2012 and has provided investment to enable the company to grow. Earlier this year, EMC announced that it signed a strategic commercial agreement with Arabsat to operate a multi-purpose Ka-band hosted payload on the satellite operator’s forthcoming Badr-7 satellite.
EMC stated that the transaction had both vertical and horizontal benefits. For the former, EMC will take control of STM’s VSAT products division, which has had over 150,000 terminals deployed in to service. In addition, EMC will acquire an expanded customer base and vertical expertise in oil and gas, maritime, telecom, governments, NGOs, mobile operators and corporate enterprises.
For the latter, the deal further bolsters its presence in Africa, where it is now the largest VSAT provider, as well as giving it a greater footprint in Latin America, Europe, the Middle East and Indonesia.
The purchase of Vodanet Brasil means that EMC becomes one of the only global providers with a direct Anatel-approved VSAT licence for delivering services in the country.
Founder and CEO Abel Avellan said: “STM, Global IP and Vodanet Brasil bring significant value to EMC’s portfolio of services and capabilities. We are very excited about leveraging our combined capabilities and new positioning to address the growing mobility and maritime markets.
“The collective STM entities’ expertise in providing network services in key verticals, particularly offshore and mobility, combined with its innovative satellite technology are tremendous assets to EMC and STM customers.”
Founded by current chairman and CEO Emil Youssefzadeh in 1984, Nasdaq-listed STM Wireless filed for a prepackaged Chapter 11 bankruptcy protection in 2003 as part of its US$4m acquisition by private equity firm Sloan Capital Partners. The deal was effectively a management buyout as Youssefzadeh’s brother-in-law Farhad Yousefzadeh controls Sloan Capital.
Following its takeover, STM sought to expand internationally and in 2005 established Vodanet Brasil. The following year it opened a STMEA in Dubai and in 2007, following the acquisition of Nera Broadband and an significant investment in its global teleport business, STM begun operations in Norway, Russia, Africa and Southeast Asia.
