7th Nov 2014 09:07
LONDON (Alliance News) - Mobile satellite communications services provider Inmarsat PLC said Friday it has agreed to sell its 19% holding in SkyWave Mobile Communications Inc to ORBCOMM Inc for USD32.2 million.
As part of the deal, Inmarsat will buy SkyWave's satellite network assets, which it hosts on three of its satellite access stations, for USD7.5 million.
It expects to complete the stake sale in early 2014. Inmarsat said the sale was part of "a suite" of agreements with ORBCOMM that it believes will enhance both ORBCOMM's and Inmarsat's machine-to-machine capabilities.
The agreements also cover the joint ownership and future development and commercialisation of Inmarsat's IsatData Pro technology. IsatData Pro is a short message service for machine-to-machine communication.
Inmarsat separately said that it had completed construction of the final four satellite access stations for its Global Xpress fleet of satellites. The company said this was a "significant milestone" ahead of the rollout of its GX network, scheduled for early in the second half of 2015.
Shares in Inmarsat are trading up 1.4% at 709.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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