Inmarsat to buy Segovia for €73.5m
Mobile sat firm Inmarsat has agreed to pay an initial US$110 million (€73.5 m) to acquire Virginia-based Segovia.
The company specializes in providing secure IP solutions to the US military and government.
Inmarsat said the acquisition would help it enable it to deliver integrated land, sea and aeronautical solutions to the US Department of Defense (DoD) and other government agencies. The US government is already Inmarsat's largest customer.
The UK-based operator will pay an initial $110 million, with possible further payment depending on performance over the next three years. It will fund the deal from existing resources.
For calendar year 2008, Segovia reported revenue of $67 million and net income of $18 million. It will continue to operate as a separate business after the deal closes, likely in early 2010.
Jim Parm, CEO of Stratos, Inmarsat's direct distribution business, said Segovia's managed services capability and secure network would help Inmarsat deliver “essential mobile and portable satellite communications solutions to the US DoD, the largest customer for these services in the world.”