[SatNews] Panasonic Corporation and ITC Global announced today they have entered into a definitive agreement for Panasonic to acquire ITC Global, a leading provider of satellite communication services for the energy, mining, and maritime markets. Founded in 2001 with regional headquarters in Houston, Texas; Sion, Switzerland; and Perth, Australia, ITC Global serves customers at more than 1,200 remote sites across 70 countries and all the world’s oceans.
Panasonic, through its subsidiary Panasonic Avionics Corporation, is a leading provider of inflight communications and entertainment systems to the aviation market. By combining complementary strengths, ITC Global and Panasonic Avionics will become a new leader in global satellite services poised to support long term customer requirements as demand for bandwidth and efficient, reliable communications solutions continues to grow across the energy, mining, maritime and aviation markets. Panasonic Avionics’ satellite network already covers 99 percent of all airline flight hours and 98 percent of all maritime traffic routes, and the organization is in the process of adding High Throughput Satellite capacity that will wrap around the globe.
Upon the closing of the acquisition, ITC Global will become “ITC Global, A Panasonic Company” and will operate as an independent unit of Panasonic Avionics. ITC Global will continue to execute its current strategic plan under the leadership of Joe Spytek, ITC Global’s founder and Chief Executive Officer, who will report to Paul Margis, President and Chief Executive Officer of Panasonic Avionics.
ITC Global’s management team will remain in place and will continue to focus on its customers in the energy, mining, and maritime markets, while Panasonic Avionics will remain dedicated to its customers in the aviation market.
“Panasonic’s acquisition of ITC Global highlights the natural alignment of customers across the aviation, energy, mining and maritime markets, all of whom require mobile broadband, high reliability, global coverage and responsive customer service,” said Margis. “ITC Global is a proven leader and we share a common passion for excellent customer service. Together, we look forward to taking satellite communications services to a new level of value and performance.”
“Panasonic Avionics’ global capabilities and leadership in satellite-based communication will enable ITC Global to enhance our core service offerings to all of our customers,” said Spytek. “This combination assures ITC Global’s long-term access to next-generation satellite technology resources and strengthens our ability to deliver optimal value and service to meet our customer’s current and future mission requirements.”
Boston-based private equity firm, Riverside Partners, has owned ITC Global since 2011. During that time, the company experienced a period of expansion, quadrupling sales through a combination of organic growth, new customer wins, and successful acquisitions.
The transaction is expected to close after customary conditions have been met and regulatory approvals have been obtained. Centerview Partners acted as Panasonic's exclusive financial advisor.
Weil, Gotshal & Manges LLP and Thompson Hine LLP acted as Panasonic's legal advisors on the transaction. Choate, Hall & Stewart acted as ITC Global’s lead legal advisor.
ITC Global and Panasonic Avionics will be available at booth 5109 to discuss the announcement during the SATELLITE 2015 Conference and Exhibition, being held March 16-19 at the Washington Convention Center in Washington, D.C.