Global satellite telecommunications service provider, SpeedCast International, has acquired the assets of the teleport and satellite services business of NewSat (ASX:NWT) from its receivers.
As per the agreement, the assets include the land and buildings at NewSat's teleport facilities in Adelaide and Perth and the associated plant and equipment, as well as most of the customer and supplier contracts.
NewSat's customer base is composed of a reseller network, blue chip enterprise customers and government customers. These customers are already being provided satellite services out of teleport facilities in Adelaide and Perth.
In a statement on the ASX, SpeedCast said the addition of NewSat's infrastructure assets in Australia will complement the company's existing infrastructure in the region, provide expansion capabilities and enhance its ability to deliver high quality satellite communications services to its energy, government and telecom customers in Asia-Pacific, Middle-East and Africa.
Speed Cast CEO, Pierre-Jean Beylier, said the company will continue to execute on its strategy of growing the business through strong organic growth in the end markets it operates in, and through acquiring assets in key locations and/or industries where it sees long-term sustainable growth.
"Our Australian network, augmented by NewSat's infrastructure assets and customer base, will enable us to expand our presence in the market, in particular with government and Perth-based customers to which we can sell additional services globally, as well as enhance the level of local support previously available to our customers," he said.
Beylier mentioned that NewSat's teleport infrastructure and operations and engineering team also enhanced its ability to serve customers in Asia-Pacific, thus strengthening its position in the region.
"[It also gives] us new capabilities to provide services into the Middle East and Africa. It represents an attractive platform for future growth," Beylier he said.
SpeedCast also announced it will be retaining 20 key employees in the operations and engineering department and in sales globally.