17th Aug 2015 07:58
LONDON (Alliance News) - Satellite Solutions Worldwide Group PLC Monday said it has bought French broadband provider Sat2Way SARL for EUR825,000 in cash.
The satellite broadband company said that Sat2Way has over 5,500 residential and business customers with customers in France, Spain, Switzerland and Belgium. For the eight months ended February 28, it generated sales of EUR1.7 million and an earnings before interest, tax, depreciation and amortisation loss of EUR0.4 million.
SSW said it expects the acquisition to be earnings enhancing within the current financial year, and added that as a result of the purchase it is now the second largest satellite broadband provider in France.
"We are delighted to welcome Sat2Way customers and staff to SSW. This is our third acquisition in a key European market since listing on AIM in May 2015; it underpins our growth ambitions and takes our subscriber base to approximately 20,000 customers, a 65% increase since float," Chief Executive Andrew Walwyn said in a statement.
"Following this acquisition, France is now our second biggest market after the UK, and we expect to expand further there in due course. France is a model case study on how government support can rapidly accelerate satellite broadband adoption, and we are aware that a number of other European governments in our key markets are considering similar schemes. I believe we face very exciting times ahead," he added.
Shares in SSW were trading down 2.9% at 4.49 pence Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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