US-based mobile electronics company KVH Industries has completed its US$6.5m all-cash acquisition of Virtek Communications, the maritime software group based in Norway.
KVH’s takeover of Virtek, whose software assists vessel owners in managing their…
US-based mobile electronics company KVH Industries has completed its US$6.5m all-cash acquisition of Virtek Communications, the maritime software group based in Norway.
KVH’s takeover of Virtek, whose software assists vessel owners in managing their satellite communications services, is part of plans to expand in the maritime broadband sector.
“In order to provide the highest quality maritime VSAT service available, we recognised that our end-to-end solution would be improved if we were able to optimize the data transmitted over the network while providing an array of versatile onboard applications specially designed to work well in the maritime environment,” said KVH CEO Martin Kits van Heyningen.
Although Heyningen expects the acquisition to be “only modestly accretive in the near-term, excluding transaction costs”, he believes its value will be later realised through “the synergistic effect” that Virtek’s technology will have on KVH’s expansion plans.
To this end, Virtek’s current management and team will stay intact following the takeover, helping KVH integrate the technology into its business model.
Virtek’s software is compatible with satellite communications services including KVH’s own mini-VSAT Broadband(SM) and Inmarsat’s FleetBroadband.
Morten Aasen, Virtek’s managing director, said: “Together with the speed, reliability, and affordability of KVH’s mini-VSAT Broadband network, we are preparing to offer a versatile solution ideal for virtually any commercial or leisure mariner in need of satellite communications and broadband access.”
