Satlynx SA today announced the signing of an agreement for the acquisition of Spaceline, the satellite communications division of HP, for an undisclosed amount. Following the acquisition by Satlynx of Xantic accounts in 2005, the purchase of the Spaceline business creates a growing focus within Satlynx on profitable SCPC business.
The acquisition brings together two of the industry’s strongest European players in this sector, especially in the emerging markets of Eastern Europe and the Middle East and Africa. The move also accelerates Satlynx’s strategic initiative to grow revenues in the short term and to add shareholder value to the SES group.
“The consolidation of the two businesses under the Satlynx banner will far outweigh our individual approaches to the market,” said Paul Heinerscheid, President and Chief Executive Officer of Satlynx.
“Satlynx and Spaceline are well matched; there is a significant complement in both service portfolios and sales synergies can be realised with immediate effect.” Spaceline, originally part of the Thyssen group, was founded in 1992 and was one of the first satellite service providers to deploy large multi-site networks for the gasoline industry. It reached EBITDA and cashflow breakeven shortly after in 1994 and was spun-off from ThyssenKrupp as part of Triaton in 1999.
In recent years it has seen steady growth in the SCPC market that forms the majority of its business today. In 2004 HP took control of Spaceline through its acquisition of Triaton.
“Satlynx’s acquisition of Spaceline will allow the business to realise its full potential, with its customers benefiting from their broad portfolio of satellite communications products and services,” said David Welsh, EMEA Director, HP Network Solutions Group.
The transaction is subject to certain closing conditions and is expected to be completed in May 2006. Upon closing of the transaction Spaceline will be fully integrated into Satlynx, ensuring a smooth transition and immediate value for customers and partners.
