"BSS plotting ME acquisitions following Intersat Africa buy"
Teleport Services and satellite communications company Belgium Satellite Services has acquired Intersat Africa, an internet-via-satellite service provider, as it seeks to expand its presence in Africa and the Middle East.
Speaking to Satellite Finance, BSS chief executive Nitin Dhawan said the company could follow the deal with further mid-size acquisitions, particularly in the Middle East, in order to gain scale in the region.
Dhawan would not disclose financial terms of the Intersat transaction, although he did say that the consideration was split between an upfront cash payment and a three-year earn out based on Intersat hitting certain revenue targets.
He added that BSS had been in discussion with Intersat over a strategic partnership since February 2011.
For BSS the logic of the deal is centred on Intersat's strong enterprise customer base and ground reach in Africa.
Dhawan said that BSS has been looking to move into the region for some time but having a local presence and knowledge was hugely vital and taking an inorganic approach made sense.
"BSS has been looking to expand into Africa and the Middle East through a strategic partner and we are delighted to have found the right synergy"
This view was echoed by Ajoy Khadheria, chairman of BSS, who commented: "BSS has been looking to expand into the Middle East and Africa through a strategic partner for some time now and we are delighted to have found the right synergy and drive in Intersat Africa Limited, which has earned its reputation for providing reliable, stable and innovative solutions tailored to the African market."
Headquartered in Nairobi, with offices in Dubai and London, Intersat currently offers internet-via-satellite connectivity, via capacity on SES satellites, to major organisations, government institutions and the private sector throughout the African continent and part of the Middle East.
On completion of the deal, the two companies will work towards joint sales, marketing and product development activities, while BSS plans to open subsidiaries in Dubai and Nairobi to support the acquisition.
Satellite Finance, January, 2012