RigNet, Inc. RNET, a
leading global provider of managed remote communications solutions to the oil
and gas industry, today announced a strategic deal with Inmarsat plc, 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.
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