Satellite Solutions Wldwide Grp PLC Operational Update and Completion of Acquisition (4911T)
January 06 2017 - 2:00AM
UK Regulatory
TIDMSAT
RNS Number : 4911T
Satellite Solutions Wldwide Grp PLC
06 January 2017
Satellite Solutions Worldwide Group plc
("SSW" or the "Company")
Operational Update and Completion of Acquisition
Satellite Solutions Worldwide Group plc (AIM: SAT), 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 ("SES"). 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.
The new contract for Virtual Network Operator ("VNO") capacity,
equivalent to approximately 5,000 typical customers, ensures
continuity of supply into early 2019 in the UK and French markets,
allowing SSW to continue developing new, faster products for the
business to Consumer ("B2C") market. Part of the capacity is also
ringfenced for bespoke connectivity solutions into the Business to
Business ("B2B") and enterprise markets.
Acquisition update
SSW has also acquired, for approximately GBP870,000, 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 31 March 2016.
This is the completion of the second of two acquisitions funded by
a GBP2m Business Growth Fund loan note announced on 25 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 resalises how viable
the latest generation satellite broadband services are in
connecting underserved communities across Europe."
For further information:
Satellite Solutions Worldwide www.satellitesolutionsworldwide.com
Group PLC
Andrew Walwyn, Chief Executive Via Walbrook PR
Officer
Numis Securities (Nomad Tel: +44 (0)20 7260
and broker) 1000
Jamie Lillywhite / Simon
Willis (Corporate Advisory)
James Black / Jonathan Abbott
(Corporate Broking)
Walbrook PR (PR advisers) Tel: +44 (0)20 7933
8780
Paul Cornelius / Nick Rome or ssw@walbrookpr.com
About SSW
Established in 2008, SSW specialises in the provision of rural
and last mile broadband services with customers across 32
countries. SSW's solutions target B2C and B2B users, and the
Company has products developed specifically for the broadcasting,
Police and Military markets. SSW operates a number of brands such
as Europasat (Europe), Breiband (Nordics) and SkyMesh (Australia)
and is now the fourth largest independent provider of satellite
broadband internet services in the world.
Last year's listing on the London Stock Exchange together with
the support from Business Growth Fund and the investor community
this year have put the Company in an excellent position to continue
strong organic growth in its subscriber base and recurring revenues
as well as execute on its preferred acquisition partners. The
Directors of SSW believe there is a major opportunity to continue
this organic growth and as appropriate consider acquisitions
throughout the fragmented European satellite broadband market and
further afield.
Working closely with satellite owners and operators, SSW targets
customers in the 'digital divide' with solutions that deliver up to
30 Mbps satellite based broadband services or fixed wireless to
almost any premises, whether residential, commercial or industrial
across Europe and Australia, irrespective of location or local
infrastructure.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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