Hong Kong-based satcoms firm SpeedCast has snapped up Singapore satellite infrastructure player ST Teleport, which focuses on the maritime, energy, enterprise and media verticals. The deal complements SpeedCast’s acquisition of NewSat assets earlier this year.
Hong Kong-based satcoms firm SpeedCast (ASE:SDA) has made its fifth acquisition this year, snapping up Singapore satellite infrastructure player ST Teleport for an undisclosed sum.
ST Teleport employs about 50 communications and IT experts and is one of only two large teleport infrastructure businesses in Singapore, a major hub in Asia for the global maritime and oil & gas markets.
SpeedCast has been increasing its exposure to these industries through a series of bolt-on deals since private equity firm TA Associates acquired it in late 2012. It has acquired 10 mostly Asia-focused satcoms companies as it looks to consolidate the fragmented sector.
Pierre-Jean Beylier, SpeedCast’s CEO, said in an interview earlier this year that he saw significant opportunities in the energy market, where customers are looking for cheaper and more efficient alternatives amid an industry downturn.
The group said ST Teleport’s infrastructure will complement the Australia-based teleports it acquired in July from NewSat, the failed satellite operator that recently went into liquidation.
Founded in 1994, ST Teleport focuses on maritime, energy, enterprise and media verticals. It operates a hybrid network that supports access to more than 22 satellites, as well as direct connections to fibre switches in Asia and in the US.
Its satellite operator partners include Hong Kong-based AsiaSat, which sold SpeedCast to TA Associates for US$32.24m back in September 2012.
In September 2015, ST Teleport announced it had expanded its capacity commitment and strategic partnership with AsiaSat to enhance its VSAT and media services offerings.
It boosted its C-band capacity in Asia with a new dedicated antenna for AsiaSat 4 at 122E, and signed up to other satellites including Ku-band capacity on AsiaSat 8’s South East Asia and Middle East beams.
The companies said they also strengthened their collaboration efforts for enhanced land, sea and air based VSAT services, in response to strong demand for high-quality connectivity solutions for data and video services in Asia.
SpeedCast plans to use its increased Singapore presence to land customer traffic and co-locate equipment in the country.
Its acquisition is subject to regulatory approval.