Speedcast International has catapulted to a leadership position in selling satellite communications in the maritime and offshore markets by way of its purchase of Globecomm Systems.
The company completed its US$134M Globecomm acquisition on 14 December after securing approvals from national regulatory authorities.
"Globecomm has a strong reputation providing remote communications in maritime and enterprise sectors," said Speedcast chief executive Pierre-Jean Beylier. "It will strengthen our innovation capabilities with new solutions and strong engineering expertise in growth areas such as IoT, wireless and media services."
One of the biggest clients that Speedcast gains from the Globecomm acquisition is Maersk Line, which Maersk Line, which uses Globecomm's VSAT for crew communications, ship operations and container tracking.
Speedcast introduced its Sigma Gateway Xtreme in 2018 as a network management device that is capable of managing VSAT and L-band satellite communications and 4G services on board a ship or at a remote site.
It is designed to withstand harsh maritime and remote environments, delivering the high availability and performance of modern VSAT and other communication services in a secured and integrated environment.
Speedcast is confident it can hit its target of US$15M in annual cost synergies within 18 months of completing the acquisition. The newly merged businesses will aim to find savings through footprint rationalisation, network improvements and improved procurement processes.
To finance the purchase and manage debt, Speedcast completed a US$175M incremental term loan add-on to its existing US$425M US term loan B facility.