Global Invacom Acquires Leading U.S. Satellite Terminal Manufacturer Skyware For Up To US$11.6 Million; Strengthens Leadership in Global Sat Comms Market
SINGAPORE, June 2, 2015 /PRNewswire/ -- Global Invacom Group Limited ("Global Invacom" or "the Group") today announces its intention to acquire Skyware Global ("Skyware"), a leading U.S. manufacturer of satellite terminals, for up to US$11.6 million by issuing approximately US$6.6 million in treasury shares and entering into a cash earn-out model to pay Skyware up to a maximum of US$5.0 million.
The transaction, the largest to date by Global Invacom, will position the enlarged Group listed on the Singapore Exchange ("SGX") Mainboard and the U.K. AIM Market as a world leader in satellite communications ("Sat Comms") equipment with manufacturing presences in U.S., Europe, and Asia.
The acquisition is subject to approval by SGX and Global Invacom shareholders at an extraordinary general meeting ("EGM") to be convened.
Skyware, based in North Carolina, is a leader in developing, designing and manufacturing Very Small Aperture Terminals ("VSAT"). Through this acquisition, Global Invacom will add Skyware as its U.S. manufacturing presence to its existing Sat Comms production footprint in Asia (China, Israel and Malaysia) and Europe (U.K.).
Following the acquisition, Global Invacom will be the world's only full-service outdoor unit supplier, providing an extensive portfolio of products from antennas and electronics to accessories.
Together with Skyware's range of VSAT terminals and solutions for a wide range of Ka-band and direct-to-home satellite terminals, Global Invacom will assume a leading global position in the design and manufacture of Sat Comms equipment at a time of rising demand for internet connectivity globally.
Target geographies include pockets of South America and Europe and large areas of emerging markets where connectivity often relies on high-speed internet being delivered via satellite, instead of fibre or cable.
Post-acquisition, Global Invacom will seek to improve Skyware's internal efficiencies at a time when a major customer is expected to launch two new satellites in 2016, which will lift the demand for VSAT terminals.
Tony Taylor, Executive Chairman of Global Invacom, said, "This is a very exciting addition to the Group which enhances our position as a leader in the global Sat Comms market."
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