Satellite services consolidation proposed?
March 22, 2021
By Chris Forrester
Private Equity outfit Apax Partners owns Marlink, a supplier of satellite communications, and is widely reported to be looking to sell. Reportedly it has hired bankers to advise on a sale.
However, on January 13th Marlink announced plans to buy satellite solutions provider ITC Global.
Nevertheless, there are reports that two normally potential buyers, Speedcast and Global Eagle Entertainment, are ruled out of any consolidation process because of their own financial positions. Speedcast has only just emerged from Chapter 11 bankruptcy while Global Eagle Entertainment is still in Chapter 11.
Speedcast’s CEO is on the record as saying the company is now concentrating on its existing divisions and is not interested in fresh acquisitions.
Another potential buyer in UK-based Inmarsat which could arguably make a strong case for absorbing Marlink. Marlink is also a major customer of Inmarsat in the satellite operator’s Maritime sector.
Apax also is part of the consortium that owns Inmarsat having acquired the business in 2019.