SpeedCast International Limited has signed a definitive agreement for the acquisition of NewCom International.
The acquisition opens a new growth frontier for SpeedCast in a region where satellite is widely used and SpeedCast did not have a direct presence. The acquisition will strengthen SpeedCast’s capabilities to serve and support its customers globally, including in the important and growing South American market.
NewCom has over 25 years of experience providing integrated satellite and terrestrial communications and engineering solutions throughout the South and Central American regions, the Caribbean, Mexico and Africa, where it has been leading the way and has built a reputation for the quality and innovation of its services. The company—which focuses on fast, cost-efficient delivery of the customised end-to-end solutions its customers require—specialises in the design, implementation, operations and management of critical integrated voice, video, data, content and security solutions. NewCom is similarly diversified as SpeedCast, serving all key verticals including government, telecom, oil & gas, maritime, NGOs, aviation and mining.
Based in Miami, Florida, USA, NewCom has two state-of-the-art teleports in Miami, Florida and Lima, Peru, which provide strategic infrastructure to service its customer base throughout the Americas. NewCom has experienced staff spread across the Americas including Miami, Peru, Columbia and Mexico, and has developed a variety of turnkey education, telemedicine, disaster recovery and remote office solutions to meet the demands of these fast-developing regions.
With NewCom’s acquisition, SpeedCast establishes a strong presence in South and Central America, where SpeedCast did not have an established direct presence, which is an important region for all of the Group’s existing verticals and for a number of existing SpeedCast customers. The acquisition will benefit SpeedCast’s existing customer base across multiple verticals, as SpeedCast leverages NewCom’s infrastructure and local presence to gain in operational flexibility and redundancy and enhance its support and logistics capabilities.
It also opens up a new growth avenue for the Group into the major and growing South American market, through an already well-established and well-managed business with strong growth potential.
Last but not least, NewCom strengthens SpeedCast’s presence and infrastructure in North America, with a major office and teleport in Miami, a key hub for the yachting, cruise and government market segments, an office in Mexico, and a strong management team that will further strengthen SpeedCast Americas’ organisation.
“I am thrilled to see NewCom joining the SpeedCast group as it is a well-recognised organisation with a strong market position in South and Central America, a major and growing region for satellite services. NewCom fills a gap in our capabilities and we can now state that we are truly global and capable of serving our customers wherever they are.” said Pierre-Jean Beylier, CEO of SpeedCast. “There is a real growth opportunity for SpeedCast in the Americas that we will now be able to better realise. With NewCom’s infrastructure, local presence, relationships and experience, combined with SpeedCast’s strengths, we are well positioned to deliver innovative and value creating solutions to customers in the Americas.”
Joining SpeedCast, NewCom will be able to offer its customers a wider portfolio of products and services, and better serve its customers’ needs worldwide. It will also leverage SpeedCast’s global network and financial strength to chase larger projects. NewCom’s growth potential will be better realised with SpeedCast’s capabilities and strengths. SpeedCast will partner with NewCom’s experienced management team and employees to continue to provide best-in-class services to NewCom’s customers.
“At NewCom, we are committed to delivering the best service and solutions to the customers we serve, and joining SpeedCast strengthens our abilities on all fronts,” said Jaime Dickinson, CEO of NewCom. “With SpeedCast’s extensive experience and infrastructure, we believe that NewCom will have the opportunity to drive further growth and advance our commitment to provide best-in-class services in the Americas, and in particular in the remote areas of South and Central America.”
This acquisition follows the establishment of SpeedCast’s presence in the Americas in 2014 with the opening of our Houston office, and a further expansion into Washington DC in 2015.
SpeedCast expects to complete the transaction by the second quarter of 2016, subject to regulatory approvals. SpeedCast was represented in the transaction by Goodwin Procter LLP.
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