Telco makes pivotal buys
SOUTHPORT-BASED telco Pivotel has acquired two US satellite businesses as it expands into the North American, Latin American and European markets.
The acquisition of MVS USA Inc. and Explorer Satellite Communications Inc is expected to boost revenue by 50 per cent this financial year to $120 million.
Pivotel, which provides satellite communications services and mobile-based plans, has been on a business-buying spree, acquiring maritime solutions provider Global Marine Networks in 2017 in the US and NZ-based Wright Satellite Connections Limited last year.
Pivotel CEO Peter Bolger said the addition of the two US companies to its network would enable it to tap into new markets. The businesses will form part of subsidiary Pivotel America Inc.
“In the telecommunications business, scale is always important,” Mr Bolger said.
“We expect to achieve synergies at the network level which will drive improved margins across our expanded customer base and increase the opportunity to sell solutions to new customers and markets,” he said.
Mr Bolger said the company had historically invested 10 per cent of revenue into research and development.
“By having access to more markets and a larger customer base we can get better returns on our investment.”
Pivotel America president Robert Sakker said the new businesses complement Pivotel’s current operations.
“MVS not only provides an immediate revenue lift but also provides enormous potential to accelerate our organic growth,” he said.
“Explorer Satellite Communications has a unique and strong presence in the American and international adventure market, with an established customer base and sales channel.
“Explorer has had sales success despite its relatively small size, and we think they will do great things with the resources of Pivotel behind them.”
MVS CEO Deborah Deffaa said the company was drawn to Pivotel by its innovative approach to services.
“The allure of connecting our North American, Latin American and European network to Pivotel’s Asia-Pacific network is irresistible,” she said.
“We will literally span the globe with a satellite data super-highway.”
Pivotel has a direct connection to the world’s four major mobile satellite networks: Iridium, Inmarsat, Thuraya and Globalstar.
Earlier this year it launched broadband service Iridium Certus following a nine-month process to integrate its network with the USbased company in Tempe, Arizona.
The service was made possible by the launch of 76 satellites into space over two years.