Satellite Solutions Wldwide Grp PLC Bolt-on Acquisitions (5851V)

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: [phone] 
 and broker)                     1000 
 Oliver Hardy (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 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

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