SpeedCast International Limited (SpeedCast), a leading global satellite telecommunications service provider, today announced that it has signed a definitive agreement to acquire SAIT Communications, a fast-growing maritime communications service provider in southern Europe. SAIT Communications is one of the leading suppliers of L-band satellite services in the southern European maritime market, in particular Greece, which is one of the largest maritime markets in Europe, as well as Cyprus. SAIT Communications has demonstrated consistent strong organic growth for the past few years…
SpeedCast International Limited (SpeedCast), a leading global satellite telecommunications service provider, today announced that it has signed a definitive agreement to acquire SAIT Communications, a fast-growing maritime communications service provider in southern Europe. SAIT Communications is one of the leading suppliers of L-band satellite services in the southern European maritime market, in particular Greece, which is one of the largest maritime markets in Europe, as well as Cyprus. SAIT Communications has demonstrated consistent strong organic growth for the past few years, with further sustained organic growth expected as it benefits from the adoption of broadband services on a growing number of vessels in the merchant shipping sector. The acquisition will bolster SpeedCast's strength in the global maritime market, enhance its services portfolio with additional offerings, and significantly expand SpeedCast's exposure to the important shipping sector.
SAIT Communications has been active in the maritime communications business for close to 10 years. The company prides itself as a leading provider of advanced communications and IT services to Greek ship owners wherever their vessels operate around the globe. SAIT Communications boasts a marquee customer list, including most of the top Greek shipping companies, and services about 2500 ships. It has experienced impressive growth rolling out Fleet Broadband, an Inmarsat service, to close to 1,500 vessels over the past few years, and has more recently started providing VSAT broadband services. The Company is based in Cyprus with employees in Cyprus and Greece.
SAIT Communications uniquely complements and extends SpeedCast's maritime business thanks to its long term customer relationships with large Greek shipping companies, a strong L-band expertise, an innovative portfolio of value-added services, and a very experienced management team that will drive the growth of SpeedCast's business globally. With this transaction, SpeedCast acquires a strong foothold in Southern Europe, a region with continued L-band growth and ripe for accelerated VSAT services growth, in particular in Greece and Cyprus, countries that host many large ship owners and fleet managers. The combined entity will be one of the largest service providers to the maritime sector in the market today, servicing over 5000 vessels with a wide portfolio of communications and IT services, and an impressive global support network.
"Our maritime business is a key growth engine for SpeedCast. With this acquisition, we are expanding our presence in major and fast growing maritime markets in southern Europe. These low VSAT-penetrated markets are well positioned for accelerated growth," said Pierre-Jean Beylier, CEO of SpeedCast. "I am thrilled to welcome the very experienced and talented SAIT Communications' management team, as together we position the group as an even stronger global provider of state-of-the-art communications and IT services to the maritime sector. There are significant revenue synergies between the two companies, and a strong potential for revenue growth and margin expansion in the key markets where SAIT Communications operates."
Joining SpeedCast, SAIT Communications will now be able to offer its maritime customers a wider portfolio of products and services, including the widest range of VSAT services in the market, and to better support its customers globally leveraging SpeedCast's network of field engineers in key ports around the world. SpeedCast will partner with SAIT Communications' experienced management team and staff to continue to deliver best-in-class services to SAIT Communications customers and help them migrate to the best suited VSAT services when appropriate. SAIT Communications will further expand SpeedCast's global maritime network in the strategic Greek market. The transaction is expected to close on 31 July 2015.
"We are thrilled to be joining SpeedCast, a leading global player in maritime satellite communications services," said Athina Vezyri, CEO of SAIT Communications. "With SpeedCast's VSAT experience and global infrastructure and support capabilities, we believe that SAIT Communications will be able to even better fulfill the needs of our maritime customers, and thus achieve accelerated growth." SAIT Communications' management team will remain with the SpeedCast group.
This announcement follows SpeedCast's acquisition of Geolink Satellite Services earlier this year, a service provider active in the maritime sector, mostly in France.
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