Speedcast International Limited (ASX: SDA has completed their previously announced 100% acquisition of UltiSat in a cash transaction of up to $100 million, payable over two years and subject to ongoing financial performance — the closing is effective as of November 1, 2017.
The acquisition of UltiSat accelerates Speedcast's push into the government vertical, a global market of $4.8 billion per annum, and gives Speedcast critical mass in the vertical with over $100 million in revenues globally. Increasing demand for connectivity and a new investment cycle will underpin long-term growth in the government vertical, supported by technology enhancements and satellite capacity availability.
This acquisition extends Speedcast's position serving government and Inter-Governmental Organization (IGO) customers at a time when government spending is expected to rise. UltiSat is a leading provider of remote communications and high-touch professional services in these sectors, in particular, the US Government and also complements Speedcast’s existing government related activities in Australia, Asia, Europe and Latin America.
UltiSat will become a wholly-owned subsidiary of Speedcast International Limited. UltiSat's CEO Mohammed G. Abutaleb will lead the UltiSat subsidiary as well as the newly formed Global Government division.
Speedcast CEO Pierre-Jean Beylier stated that the acquisition of UltiSat creates a fourth pillar of growth for Speedcast and further strengthens Speedcast's position as the global leader in remote communications and IT services with unique scale and capabilities. UltiSat's customers will benefit from the company's combined breadth of facilities, the firm's engineering expertise and Speedcast's unique satellite network across multiple frequency bands. Furthermore, Speedcast will be able to leverage UltiSat's experience and innovative solutions for existing customers.