SATELLITE equipment specialist Global Invacom Group is buying US satellite terminal manufacturer Skyware Global for up to US$11.6 million, in what the mainboard-listed group said will position it as a world leader in satellite communications.
The consideration will be made partly through the issuance of US$6.6 million in treasury shares to its owner Satellite Holdings, and up to US$5 million in cash through an earn-out model.
Under this model, Global Invacom will pay to Satellite Holdings about 0.5554 times on revenue over US$52.3 million between June 1, 2015, and May 31, 2016, up to a cap of US$5 million.
North Carolina-based Skyware develops, designs and manufactures Very Small Aperture Terminals, and will add to Global Invacom's current manufacturing presence in China, Israel, Malaysia and the UK. After the acquisition, Global Invacom claims it will be the only full-service outdoor unit supplier globally.
"This is a very exciting addition to the group which enhances our position as a leader in the global satellite communications market," said Tony Taylor, Global Invacom executive chairman.
"The acquisition not only strengthens our presence in the US, but also complements our existing international footprint by bringing a new suite of products and expertise to address the global demand for Internet connectivity. The transaction demonstrates our commitment to grow the business through strategic acquisitions."
The acquisition is the second by Global Invacom since it embarked on an acquisition campaign. The group completed a secondary listing on the London AIM Market in July last year to raise funds for expansion.