Australian telco, Pivotel, has ramped up its efforts in the satellite data communications market through the acquisition of US-based satellite provider, Global Marine Networks (GMN).
The value of the deal was not disclosed.
As well as GMN’s product portfolio, the acquisition also involves its team of developers including the GMN RedPort brand of satellite Voice over Internet Protocol (VoIP), data routers and services.
On the back of this, Pivotel also plans to expand its product sales into the American market. Pivotel has an extensive range of satellite voice, data, personal safety and asset monitoring software products.
GMN CEO, Dr. Luis Soltero, said the company had spoken with a number of potential suitors but Pivotel’s commitment to the satellite data market and its continued investment in new solutions while also wanting to grow the international sales of the GMN RedPort product suite, were some of the factors that led to the acquisition.
Pivotel CEO, Peter Bolger, said the acquisition was a natural fit as they had an interest in gaining entry into the American market.
“Satellite phone technology has come a long way in a few short years," Bolger said. "Data downloads are comparatively slow, sometimes painfully slow, and are notoriously expensive on a satellite network, but we know our customers increasingly need to access the Internet and apps for both business and personal use.
“It makes sense then, for us to partner with a satellite solutions developer, to offer our customers with access to faster, more affordable content for an improved user experience.
"By bringing their expertise in-house we are also able to develop more tightly integrated solutions that leverage Pivotel’s network infrastructure."
All of GMN's staff will be kept on-board and Bolger said it will also be looking at investing in additional sales and development staff in the American region.
"Dr Soltero will also be staying on because a lot of the research and development that the company does, centres around his capabilities, and we want to keep that going," he said.
The transaction will close on 1 September.
This story was updated on August 17 to include additional comments from Peter Bolger.