Satellite Solutions Wldwide Grp PLC Operational Update and Completion of Acquisition (4911T)

TIDMSAT

RNS Number : 4911T

Satellite Solutions Wldwide Grp PLC

06 January 2017

Satellite Solutions Worldwide Group plc

("SSW" or the "Company")

Operational Update and Completion of Acquisition

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 ringfenced for bespoke connectivity solutions into the Business to Business ("B2B") and enterprise markets.

Acquisition update

SSW has also acquired, for approximately GBP870,000, 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 GBP2m 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.

Andrew Walwyn CEO at SSW said: "Committing to our first VNO with SES gives us access to more near to medium term capacity, ensuring satellite bandwidth is available to deliver on our future plans and improve services for existing customers.

"The VNO is the first significant example of the operational leverage SSW is beginning to enjoy as a result of our acquisitive strategy. The deal will improve margins and increase the capacity and services we can provide, driving growth from existing and future customers. I hope it is the first of a number of deals which will reflect the benefits of the being the largest satellite broadband provider in Europe."

Norbert Willems, Vice President, Commercial at SES Techcom Services said: "We are delighted to finalise this new agreement with SSW and further expand our partnership. Demand for satellite broadband services continues to grow as Government intervention schemes start to gain traction and the market resalises how viable the latest generation satellite broadband services are in connecting underserved communities across Europe."

For further information:

 
 Satellite Solutions Worldwide    www.satellitesolutionsworldwide.com 
  Group PLC 
 Andrew Walwyn, Chief Executive   Via Walbrook PR 
  Officer 
 
 Numis Securities (Nomad          Tel: [phone] 
  and broker)                      1000 
  Jamie Lillywhite / Simon 
  Willis (Corporate Advisory) 
  James Black / Jonathan Abbott 
  (Corporate Broking) 
 
 Walbrook PR (PR advisers)        Tel: [phone] 
                                   8780 
 Paul Cornelius / Nick Rome       or [e-mail] 
 

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.

Last year's listing on the London Stock Exchange together with the support from Business Growth Fund and the investor community this year 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 its preferred acquisition partners. The Directors of SSW 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

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January 06, 2017 02:00 ET (07:00 GMT)