2nd Jul 2009 13:25
Inmarsat completes investment in SkyWave Mobile Communications - advances position in satellite low data rate services market
LONDON, 2nd July, 2009 -- Inmarsat plc (LSE: ISAT), the leading provider of global mobile satellite communications services, has completed its previously announced strategic investment, long term global distribution agreement and new product development agreement with SkyWave Mobile Communications Inc. of Ottawa, Canada.
Concurrent with this investment, SkyWave has acquired assets relating to the GlobalWave satellite low data rate (SLDR) products and services business from TransCore and entered into a sales distribution relationship with TransCore focusing on the North American trucking and rail segments of the SLDR market, designed to leverage TransCore's substantial presence in those segments.
Inmarsat has acquired 19% in the privately held SkyWave. In addition, Inmarsat and SkyWave have entered into a direct distribution agreement for the supply of satellite capacity to SkyWave on a global basis.
Perry Melton, Inmarsat's Chief Operating Officer said, "We are delighted to have completed on our investment in Skywave. We estimate that the SLDR market is worth US $600 million today in end user revenue and has significant growth potential. This investment and partnership with SkyWave fits our strategic commitment to pursue opportunities that leverage our satellite network assets."
Global distribution of SkyWave's Inmarsat-based products and services will be carried out through a network of highly successful and well established Solution Providers across the world, including TransCore, which will serve as the channel partner in North America serving the trucking and rail sectors.
Inmarsat was advised by Morgan Stanley on this transaction.
For further information, please contact:
Chris McLaughlin, Inmarsat plc: + 44 20 7728 1015 / +44 779 627 6033
Forward-looking Statements
Certain statements in this announcement constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from those projected in the forward-looking statements. These factors include: general economic and business conditions; changes in technology; timing or delay in signing, commencement, implementation and performance of programmes, or the delivery of products or services under them; structural change in the satellite industry; relationships with customers; competition; and ability to attract personnel. You are cautioned not to rely on these forward-looking statements, which speak only as of the date of this announcement. We undertake no obligation to update or revise any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances.
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