SSW acquires Viveole; renews SES contract
January 6, 2017
Satellite Solutions Worldwide Group (SSW), the global communications company specialising in rural and last mile broadband, has agreed a new commercial contract with one of its key suppliers of satellite capacity, SES Techcom Services. The contract means improved commercial terms on existing business, plus new satellite broadband capacity to support SSW’s strong ongoing sales in its primary European markets.
SSW has also acquired, for approximately £870,000, the customers and related assets, including equipment inventory and the supplier agreement with SES of Auvea Ingenierie (“Viveole”), a provider of satellite broadband services in France, with approximately 1,900 residential and business customers. The Viveole business was approximately breakeven in its year to March 31st 2016. This is the completion of the second of two acquisitions funded by a £2 million Business Growth Fund loan note announced in April 2016. All Viveole’s customers are on SES satellite services.
The acquisition of Viveole strengthens SSW’s position as the second largest satellite broadband provider in France with more than 12,500 subscribers, providing a strong base to target a market of nearly 1 million homes in France which have less than 2 Mbps broadband coverage.
Andrew Walwyn CEO at SSW said: “Committing to our first VNO with SES gives us access to more near to medium term capacity, ensuring satellite bandwidth is available to deliver on our future plans and improve services for existing customers.
“The VNO is the first significant example of the operational leverage SSW is beginning to enjoy as a result of our acquisitive strategy. The deal will improve margins and increase the capacity and services we can provide, driving growth from existing and future customers. I hope it is the first of a number of deals which will reflect the benefits of the being the largest satellite broadband provider in Europe.”
Norbert Willems, Vice President, Commercial at SES Techcom Services said: “We are delighted to finalise this new agreement with SSW and further expand our partnership. Demand for satellite broadband services continues to grow as Government intervention schemes start to gain traction and the market realises how viable the latest generation satellite broadband services are in connecting underserved communities across Europe.”