Satellite Solutions Worldwide makes three bolt-on acquisitions

Alternative broadband services specialist Satellite Solutions Worldwide has completed three acquisitions, it announced on Monday, consisting of two fixed wireless broadband ISPs and a satellite broadband customer base.

The AIM-traded firm said total consideration for the three acquisitions was £1.8m, to be satisfied out of existing cash resources allocated for bolt-on acquisitions following the company's £8m placing announced on 28 July.

It said the three acquisitions together delivered more than 4,000 new customers at an average ARPU similar to the existing SSW customer base, and generated combined historical revenue of £1.67m and historical EBITDA of £0.27m.

It said all three acquisitions were “immediately” earnings-enhancing, and the profitability of those businesses was expected to improve under SSW ownership due to better operational gearing and economies of scale.

“These three bolt-on acquisitions show that we continue to deliver on our strategy of organic and acquisitive growth,” said Satellite Solutions CEO Andrew Walwyn.

“The acquisitions are all strategically compelling and are immediately accretive to earnings and all slot into our existing operational hubs, with the ability to enhance margins and expand their customer bases as part of a larger, expanding business.”

The first acquisition, BeyonDSL, was described as a satellite broadband provider for residential and commercial properties located in remote areas across the UK and Ireland.

It has around 1,700 satellite broadband customers, which would be “rapidly” integrated into the satellite customer base of SSW's existing UK infrastructure, delivering increased UK market share.

BSL's customers use SES Techcom's satellite capacity, which would enable optimisation of margins and tariffs due to SSW's long-standing commercial relationship and capacity deal with SES.

The acquisition was structured as an asset purchase agreement with BSL's satellite assets and customers transferred to SSW.

SSW said the second acquisition was of the entire issued share capital of Clannet - an established provider of wireless broadband services to residential and commercial properties across rural areas of Yorkshire and North Lincolnshire, with around 1,000 customers.

Clannet would continue to expand its customer base, with a high proportion of new customers expected to receive BDUK vouchers funding their initial connection to the network.

It would be integrated into SSW's existing super-fast wireless business, Quickline Communications.

The third acquisition, Eidsiva Breibånd, is a provider of wireless, ADSL and fibre broadband solutions to residential and business customers in Norway - primarily in the region north of Oslo.

SSW said it is acquiring around 1,500 fixed wireless broadband customers, expecting to increase the customer base - particularly as Eidsiva has not accepted new customers onto their network over the last three years.

The acquisition of the network was described as an “excellent” geographical and strategic fit with Breiband AS, SSW's existing fixed wireless business in Norway.

It was structured as an asset purchase agreement with Eidsiva's assets - including operating infrastructure - and customers transferred to SSW.