Stratos Global, a Bethesda, Md.-based reseller of Inmarsat products, will acquire Denmark-based Xantic, an Inmarsat and Intelsat services provider, the second acquisition for Stratos in less than a year.
Stratos announced Aug. 15 the signing of a letter of intent to buy 100 percent of Xantic’s shares for approximately $191 million.
Stan Schneider, a spokesman for the company, said the acquisition will expand Stratos’ business globally, heightening its presence in areas such as Asia and Europe. It also strengthens the company’s hold on the government, military, energy and maritime markets.
“It particularly strengthens Stratos in the maritime sector,” Schneider said.
The acquisition will give Stratos a 44 percent market share of Inmarsat products sold worldwide, Schneider added.
Xantic posted approximately $172 million in revenues for 2004, and employs 270 people. It operates two Inmarsat ground stations , one in Burum, Netherlands, and the other in Perth, Australia. It was selected by Inmarsat to host the new Satellite Access Station for Inmarsat’s Broadband Global Area Network services, scheduled to roll out commercially in 2006 using its new I-4 satellites, one of which is already in operation.
The sale must go through regulatory competition clearances in both Australia and Norway, and is expected to close in late 2005 or early 2006, Schneider said.
Stratos will not provide details about the integration of Xantic into Stratos’ business operations until the transaction is closed, Schneider said.
This past January, Stratos acquired Plenexis Holding GmbH of Germany, a provider of very small aperture terminal services. Also in January, Stratos took a 49 percent stake in Navarino Telecom SA and NTS Maritime. The acquisitions cost Stratos about $15 million.