Satellite Solutions Wldwide Grp PLC Bolt-on Acquisitions (5851V)
06 November 2017 - 6:00PM
UK Regulatory
TIDMSAT
RNS Number : 5851V
Satellite Solutions Wldwide Grp PLC
06 November 2017
Satellite Solutions Worldwide Group plc
("SSW" or the "Company")
Three acquisitions - 2 in the UK and 1 in Norway
Satellite Solutions Worldwide Group plc (AIM: SAT), the global
leader in the delivery of alternative super-fast broadband
services, today announces that it has completed three acquisitions;
two fixed wireless broadband ISP's and a satellite broadband
customer base. Total consideration for the three acquisitions is
GBP1.8 million to be satisfied out of existing cash resources
allocated for bolt-on acquisitions following the Company's GBP8
million placing announced on 28 July 2017.
The three acquisitions together deliver over 4,000 new customers
at an average ARPU similar to the existing SSW customer base and
generated combined historical revenue of GBP1.67m and historical
EBITDA of GBP0.27m(1,2) . All three acquisitions are immediately
earnings enhancing and the profitability of these businesses is
expected to improve under SSW ownership due to better operational
gearing and economies of scale.
BeyonDSL ('BSL')
Launched in 2001, BSL is a satellite broadband provider for
residential and commercial properties located in remote areas
across the UK and Ireland. BSL has c. 1,700 satellite broadband
customers, which will be rapidly integrated into the satellite
customer base of SSW's existing UK infrastructure, delivering
increased UK market share. BSL's customers use SES Techcom's
satellite capacity, which will enable optimisation of margins and
tariffs due to SSW's long-standing commercial relationship and
capacity deal with SES. The acquisition has been structured as an
asset purchase agreement with BSL's satellite assets and customers
transferred to SSW.
Clannet Broadband Limited ('Clannet')
SSW has acquired the entire issued share capital of Clannet, an
established provider of wireless broadband services to residential
and commercial properties across rural areas of Yorkshire and North
Lincolnshire, with c. 1,000 customers. Clannet will continue to
expand its customer base, with a high proportion of new customers
expected to receive BDUK vouchers funding their initial connection
to the network. Clannet will be integrated into SSW's existing
super-fast wireless business, Quickline Communications Limited.
Eidsiva Breibånd AS ('Eidsiva')
Eidsiva is a provider of wireless, ADSL and fibre broadband
solutions to residential and business customers in Norway primarily
in the region North of Oslo. SSW is acquiring c. 1,500 fixed
wireless broadband customers. SSW expects to increase the customer
base particularly as Eidsiva has not accepted new customers onto
their network over the last 3 years. The acquisition of the network
is an excellent geographical and strategic fit with Breiband AS,
SSW's existing fixed wireless business in Norway. The acquisition
has been structured as an asset purchase agreement with Eidsiva's
assets (including operating infrastructure) and customers
transferred to SSW.
Andrew Walwyn, CEO of SSW, commented:
"These three bolt-on acquisitions show that we continue to
deliver on our strategy of organic and acquisitive growth. The
acquisitions are all strategically compelling and are immediately
accretive to earnings and all slot into our existing operational
hubs, with the ability to enhance margins and expand their customer
bases as part of a larger, expanding business."
1. Based on audited accounts for Clannet for the year ended 31
March 2017, unaudited management information for BSL for the year
ended 31 March 2017 and unaudited management information for
Eidsiva for the year ended 31 December 2016.
2. EBITDA is defined as earnings before interest, tax,
depreciation and amortisation and before exceptional items.
Contacts:
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
Oliver Hardy (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
alternative super-fast broadband for premises located in areas
where there are poor wired broadband speeds. With customers in 31
countries SSW uses satellite and fixed wireless broadband
technologies to connect users who are either unserved or
underserved.
SSW's solutions target B2C and B2B users, and the Company has
products developed specifically for the broadcasting, Police and
Military markets as well as consumers. 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 AIM market of the London Stock Exchange,
together with the support from Business Growth Fund and investors
in 2016 and 2017, mean the Company now enjoys strong organic growth
and recurring revenues, complementing its acquisition strategy.
There is a major opportunity to continue the acquisition plan
throughout the fragmented European satellite and fixed wireless
broadband markets and further afield.
Working closely with satellite owners and operators, SSW targets
customers in the 'digital divide' with solutions that deliver up to
40 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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