IT and communications company, Multiemedia has announced it has signed an agreement to acquire 100 percent equity of New Skies Networks Australia from Netherlands-based satellite communications company New Skies Satellites, for $13 million.
The new entity, known as NewSat Networks, will operate as an Australian registered company, and aims to extend Multiemedia's reach into oil, gas, mining, broadcasting and government sectors, according to a statement.
Following the transaction, Multiemedia will be able to provide satellite coverage to 75 percent of the world's population, up from 60 percent, including Europe, the Middle East, Africa and Asia, making the vendor one of the largest media port operators and satellite service providers in the southern hemisphere, the statement said.
Multiemedia founder and CEO Adrian Ballintine claims the purchase is good news for Australia's ICT industry and is a significant investment that reflects the growing nature of the company.
"The acquisition will further enhance the delivery of high-speed, two-way satellite broadband to businesses and homes in regional and remote parts of Australia and the world," Ballintine said.
"The services offered by New Skies Networks are in direct synergy with our existing businesses, in particular our satellite delivery arm NewSat which is already delivering broadband to the bush under the HiBIS and Broadband for Health schemes."
The acquisition will see Multiemedia take ownership of New Skies Networks' five ongoing business lines, its Sydney head office and a network of assets including two modern media port facilities in Adelaide and Perth, which are set up on three acres and one-and-a-half acres of land, and act as a gateway between the satellites and the earth to broadcast video, voice and data.
"In the past we had to lease media port services from other companies but now we'll be able to provide them, which means some of our competitors today will become our customers tomorrow," Ballintine said.