RigNet to Buy Energy Broadband Unit of Inmarsat for $25M in Cash

RigNet, Inc. (Nasdaq: RNET), aleading global provider of managed remote communications solutions to the oiland 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 theappointment of RigNet to become a key distribution partner to deliverInmarsat's Global Xpress ("GX") and L-band services to the energy sectorworldwide.RigNet has reached a definitive agreement to acquire Inmarsat's EnergyBroadband business for $25.0 million in cash, adding to RigNet's technologysolutions, customer base and geographic footprint. The business being acquiredrepresents one of the largest pure play providers of remote communications tothe oil and gas industry, making it a natural and strategic fit with RigNet'scomplementary business. Under the terms of the deal, Inmarsat will carve outand sell to RigNet all of its energy broadband assets, whichinclude: microwave and WiMAX networks in the U.S. Gulf of Mexico servingdrillers, producers and energy vessel owners; VSAT interests in Russia, theUnited Kingdom, U.S. and Canada; an M2M SCADA VSAT network in the continentalU.S. serving the pipeline industry; a telecommunications systems integrationbusiness operating worldwide; and a global L-band MSS retail energybusiness. The energy carve-out includes assets, employees, contracts andworking capital.In addition, RigNet has agreed, simultaneous with the closing of theacquisition, to become a key distributor of Inmarsat's GX satellitecommunications network services, which will enable RigNet to offer thenext-generation satellite services to existing and new customers in the globalenergy sector. RigNet has agreed, under certain conditions, to a significantpurchase of capacity from the high-throughput GX network during the four yearsafter it becomes operational. RigNet expects to utilize GX and L-band servicesacross its own business as well as that of the acquired Energy Broadbandbusiness.