SSW Brokers New Satellite Capacity Deal, Acquires French Service Provider
BICESTER, UK -- 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 ring-fenced for bespoke connectivity solutions into the Business to Business (“B2B”) and enterprise markets.
SSW has also acquired, for approximately £870,000, 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 £2m 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.