This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Acquisition Will Provide RigNet With New Technologies, Customers and Geographies
RigNet Will Become a Key Distributor to the Energy Market of Inmarsat's Global Xpress, a New-Generation, High-Throughput Satellite Communications Network
HOUSTON, Aug. 1, 2013 (GLOBE NEWSWIRE) -- RigNet, Inc. (Nasdaq:RNET), a leading global provider of managed remote communications solutions to the oil and gas industry, today announced a strategic deal with Inmarsat plc (LSE:ISAT), the leading provider of global mobile satellite services (MSS), involving the sale of Inmarsat's Energy Broadband business to RigNet and the appointment of RigNet to become a key distribution partner to deliver Inmarsat's Global Xpress ("GX") and L-band services to the energy sector worldwide.
RigNet has reached a definitive agreement to acquire Inmarsat's Energy Broadband business for $25.0 million in cash, adding to RigNet's technology solutions, customer base and geographic footprint. The business being acquired represents one of the largest pure play providers of remote communications to the oil and gas industry, making it a natural and strategic fit with RigNet's complementary business. Under the terms of the deal, Inmarsat will carve out and sell to RigNet all of its energy broadband assets, which include: microwave and WiMAX networks in the U.S. Gulf of Mexico serving drillers, producers and energy vessel owners; VSAT interests in Russia, the United Kingdom, U.S. and Canada; an M2M SCADA VSAT network in the continental U.S. serving the pipeline industry; a telecommunications systems integration business operating worldwide; and a global L-band MSS retail energy business. The energy carve-out includes assets, employees, contracts and working capital.
In addition, RigNet has agreed, simultaneous with the closing of the acquisition, to become a key distributor of Inmarsat's GX satellite communications network services, which will enable RigNet to offer the next-generation satellite services to existing and new customers in the global energy sector. RigNet has agreed, under certain conditions, to a significant purchase of capacity from the high-throughput GX network during the four years after it becomes operational. RigNet expects to utilize GX and L-band services across its own business as well as that of the acquired Energy Broadband business.