Fast-growing Australian satellite uplink and TV facilities company Speedcast is buying Maryland-based UltiSat for “up to $100 million” spread over two years. UltiSat has a teleport in Blaavand, Denmark.
The purchase price is based on the financial achievements of UltiSat this year and into 2018. The core price is $65 million, with additional potential payments of $20 million and $15 million, according to the company.
Speedcast was owned by AsiaSat of Hong Kong and spun off in an IPO in 2012.
UltiSat is a leading provider of remote communications and professional services to governments, in particular the US government, and to international government organizations (IGOs) and non-governmental organisations (NGOs). The acquisition strengthens Speedcast’s position in the government and NGO sectors, complementing Speedcast’s government activities in Australia, Asia, Europe and Latin America.
“The acquisition of UltiSat extends Speedcast’s position serving government and NGO customers, at a time when we expect government spending to rise. UltiSat has built a really strong reputation providing remote communications and professional services to key customers, such as the US government and IGOs,” said Speedcast CEO Pierre-Jean Beylier.
Speedcast bought Harris CapRock last year for $425 million in cash. The company’s aim is to be one of the ‘Top 5’ satellite service providers in the world.