Satellite Solutions signs new VNO, acquires French assets

6th Jan 2017 08:08

(ShareCast News) - Broadband specialist and global communications company Satellite Solutions Worldwide Group announced on Friday that it has agreed a new commercial contract with one of its key suppliers of satellite capacity, SES Techcom Services.The AIM-traded firm said the contract means improved commercial terms on existing business, plus new satellite broadband capacity to support SSW's strong ongoing sales in its primary European markets.It said the new contract for 'virtual network operator' capacity, equivalent to approximately 5,000 typical customers, ensures continuity of supply into early 2019 in the UK and French markets, allowing SSW to continue developing new, faster products for the business-to-consumer market.Part of the capacity is also ring fenced for bespoke connectivity solutions into the business-to-business and enterprise markets.SSW also announced it has acquired, for approximately £0.87m, the customers and related assets, including equipment inventory and the supplier agreement with SES of Auvea Ingenierie, a provider of satellite broadband services in France, with approximately 1,900 residential and business customers.The Viveole business was approximately break even in its year to 31 March 2016.This is the completion of the second of two acquisitions funded by a £2m Business Growth Fund loan note announced on 25 April 2016.SSW said all of Viveole's customers are on SES satellite services, and the acquisition of Viveole strengthens its position as the second largest satellite broadband provider in France with more than 12,500 subscribers."Committing to our first VNO with SES gives us access to more near to medium term capacity, ensuring satellite bandwidth is available to deliver on our future plans and improve services for existing customers," said CEO Andrew Walwyn."The VNO is the first significant example of the operational leverage SSW is beginning to enjoy as a result of our acquisitive strategy."The deal will improve margins and increase the capacity and services we can provide, driving growth from existing and future customers."