Canadian maritime tracking venture exactEarth has mandated Canaccord Genuity to advise on potential merger and acquisition opportunities and different funding options as it looks to expand into maritime data services.
The AIS specialist’s parent,…
Canadian maritime tracking venture exactEarth has mandated Canaccord Genuity to advise on potential merger and acquisition opportunities and different funding options as it looks to expand into maritime data services.
The AIS specialist’s parent, space hardware manufacturer Com Dev International, said the market for data was much larger than for vessel tracking and would help exactEarth reach its full potential.
Canaccord Genuity will advise exactEarth’s board on public and private funding options, and the Toronto bank has also been retained by Com Dev to make recommendations on its strategic plan. The component-maker is particularly interested in reassessing its acquisition and dividend policies.
“The strategic options under consideration for exactEarth will be instrumental in helping it reach its full potential, while at the same time unlocking significant value for Com Dev’s shareholders,” Michael Pley, Com Dev’s CEO, said in a statement.
Peter Mabson, president of exactEarth, said: “Our success in building out exactEarth’s space- and ground-based infrastructure, achieving a position of market leadership, and reaching positive cash flow has opened up some exciting growth opportunities and new directions for the company.”
In its Q1 2015 results Com Dev said exactEarth generated revenue of C$5.3m, which represented a 60.6% rise compared to the first quarter of last year.
Com Dev owns the majority of exactEarth, which was formed in 2009 and uses a constellation of microsatellites in low Earth orbit for its tracking service. In 2010 Hisdesat, the government and military focussed Spanish satellite operator, acquired a 27% stake in exactEarth for C$15m in cash.
Com Dev has put a total of C$60m into exactEarth, which it said is equal to 32% of the total shareholder’s equity in the company. This gives exactEarth an implied value of C$187.5m.
