TIDMSAT
RNS Number : 5480Y
Satellite Solutions Wldwide Grp PLC
06 March 2017
Satellite Solutions Worldwide Group plc
("SSW" or the "Company")
Three Acquisitions Across Australia and Norway
Satellite Solutions Worldwide Group plc (AIM: SAT), the global
communications company specialising in rural and last mile
broadband, has agreed to acquire the entire issued and to be issued
share capital of BorderNET Internet Pty Ltd ('BorderNET') in
Australia and the customer bases of NextNet and AS Distriktsnett
('ASDN') in Norway for an aggregate consideration of GBP1.8m, to be
satisfied by a mixture of cash and shares. The cash elements of
these transactions will be financed by utilising the recently
announced HSBC facility.
The acquisitions are a continuation of SSW's roll-up strategy
whereby BorderNET's operations will be integrated into the existing
Australian business (Skymesh) and NextNet and ASDN will be
integrated into SSW's existing Norwegian hub (Breiband). The
acquisitions bring an additional 5,500 customers in aggregate,
creating greater scale and market share as well as the opportunity
for operational gearing through cost efficiencies and network
optimisation.
About BorderNET
BorderNET provides satellite broadband to c. 3,500 residential
and business customers in Australia and specialises in providing
broadband services to farming and remote communities. It has a
loyal customer base and integration with the group's Australian
operations is expected to result in cost synergies. The Australian
government, via NBN Co, continues to invest in its SkyMuster
satellites which will underpin continued customer growth by
providing increased access to satellite broadband services.
Conditional on receipt of consent of NBN Co, the Australian
Government's wholesale broadband provider, the Company will acquire
the entire issued and to be issued share capital of BorderNET
Internet Pty Ltd for aggregate consideration of AUS$1,852,500
(approximately GBP1,151,336). This comprises an initial cash
payment of AUS$1,439,375 (approximately GBP894,577) including a
retention amount of AUS$200,000 (approximately GBP124,300), with
the balance of AUS$413,125 (approximately GBP256,759) to be
satisfied by allotment of SSW shares at a price per share equal to
the average mid-price for the ordinary Shares of SSW over the 5
days prior to completion of the acquisition to Mr John Anderson,
sole owner of the company. The overall consideration is subject to
adjustment in cash in respect of both final customer numbers and
net tangible assets at completion.
BorderNET recorded a loss of AUS$26,804 (approximately
GBP16,554) in its most recently prepared accounts dated 30 June
2015 although it has an annualised revenue run rate of over GBP1m.
Post integration, BorderNET is expected to be profitable under
SSW's ownership.
About NextNet
NextNet provides fixed wireless and ADSL broadband solutions to
c. 1,680 residential and business customers in an area about 150km
north of Oslo. NextNet is focused on areas and regions in Norway
where there are limited, affordable and reliable broadband
alternatives.
The Company has agreed to pay cash consideration for the
customer base of NextNet of NOK 5,040,000* (approximately
GBP489,486) and a further NOK 200,000 (approximately GBP19,424) for
stock and certain infrastructure assets.
NextNet reported a loss of NOK 1,535,055 (approximately
GBP148,215) in its most recently prepared accounts dated 31
December 2015 although it has an annualised revenue run rate of
approximately GBP0.8m. Post integration, NextNet is expected to be
profitable under the SSW's ownership.
About ASDN
ASDN provides fixed wireless broadband solutions to c. 333
residential and business customers in the West of Norway. It has
built and installed its own infrastructure with two major masts and
provides another low-cost entry point into this growing market. The
Company will pay cash consideration of NOK 832,500 (approximately
GBP80,852) for the customer base of ASDN. The overall consideration
is subject to adjustment in cash in respect of final customer
numbers at completion.
Andrew Walwyn, CEO at SSW said: "These are the first three
acquisitions of 2017, which significantly strengthen our position
in these key regions. Having established strong hubs in Norway and
Australia last year, we can now readily acquire sub-scale, local
businesses and rapidly turn them into profitable assets by
integrating them onto our global platform.
"We continue to grow user numbers and revenues in these
territories and to actively pursue acquisition opportunities, in
line with our global strategy, as we continue our consolidation of
last mile broadband across Europe and Australasia."
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.
The 2015 listing on the London Stock Exchange together with the
support from Business Growth Fund and investors in 2016 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 preferred acquisitions. The Directors 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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