Marlink Group, backed by Apax Partners in France, has agreed to acquire offshore satellite communications provider ITC Global from Panasonic
This corporate deal will expand its satellite communications presence in energy and enterprise markets and Marlink will use ITC Global to diversify and strengthen its commercial operations in the US, the UK and Australia.
ITC Global built a strong position providing VSAT connectivity to offshore drilling rigs, platforms, vessels and passenger shipping using Panasonic Avionics’s Ku-band network. It was therefore impacted by 2020’s coronavirus pandemic, the resultant decline in energy prices and slump in cruise shipping.
Marlink’s position in merchant shipping satellite communications meant it was cushioned from falling demand for VSAT in passenger shipping and offshore.
Marlink expects ITC Global to become a cornerstone of its services and products in energy and enterprise sectors. It said “ITC Global brings an unparalleled expertise in managed, high-value, high-performance satellite network solutions” to the combined group.
ITC Global brought carrier-grade telecommunications and networking technologies to developing markets and remote and harsh locations.
Marlink continued, “respective customers will benefit greatly from the combined group’s enhanced capabilities and strength as a sustainable leading provider for their business-critical remote connectivity solutions. This combined group will offer managed satellite communications services and smart network solutions in maritime and energy sectors.
The transaction close is subject to customary regulatory approvals and is expected in the next three months.
A Marlink spokesman told Riviera financial information would not be available until after the transaction was completed and regulatory approvals received. This deal enables Panasonic to focus on its growing avionics VSAT business.
Marlink provides smart network solutions with an intelligent hybrid network for combining multi-band satellite communications with terrestrial technologies, including a smart edge integrated delivery platform that orchestrates and optimises all network elements, and applications including data handling and IT, application-based routeing, cloud and digital solutions, including remote data and IT, cyber security internet-of-things technology.
Marlink’s acquisition of ITC Global is part of another round of satellite communications industry consolidation that resulted from the slump in demand in the energy and passenger shipping markets.
In December 2020, satellite owner Viasat Inc announced its agreement to acquire RigNet Inc in an all-stock transaction that valued RigNet at an enterprise value of approximately US$222M. This corporate deal will help to further accelerate Viasat’s strategy to provide broadband connectivity and communications in the offshore energy industry and remote rig sites. It will enable Viasat to quickly expand into new adjacent industries including: energy, shipping, maritime, mining and additional enterprises.
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