…SpeedCast Acquisitions Limited for the disposal of its entire interest in its wholly owned subsidiary, SpeedCast Holdings Limited (SpeedCast). Since its inception in 1999, SpeedCast has used AsiaSat’s satellite capacity for the provision of satellite-based broadband services and is currently offering high-quality managed network services in more than 30 countries throughout Asia, the Middle East and Africa. Following the conclusion of the transaction, AsiaSat will continue to be a significant supplier of satellite capacity and technical services for SpeedCast.
William Wade, President and Chief Executive Officer of AsiaSat said, “As a founding shareholder of SpeedCast, we are proud to have helped facilitate SpeedCast’s development into a leading provider of global network and satellite communications services. We believe the disposal of this non-core asset will benefit SpeedCast’s long term growth while offering an attractive opportunity for AsiaSat to realise its investment in this successful business. The proceeds from the disposal will serve as general funds for further growth of our core business.”
Furthering this information, TA Associates has, with the support of SpeedCast’s management team, completed a buyout …
…of SpeedCast Ltd. from Asia Satellite Telecommunications Co. Ltd. (AsiaSat). SpeedCast provides very small aperture terminal (VSAT) satellite-based broadband access services, managed networking solutions and value-added services in more than 30 countries primarily in Asia, the Middle East and Africa. SpeedCast’s customers include telecom carriers, Internet service providers, governments and non-governmental organizations, and other enterprises requiring communication services in locations where wire-based communication is not possible or practical, or where mobility is required. Through its SeaCast™ offering, the company serves the broadband needs of the maritime and offshore oil and gas industries. The company uses 16 teleports across the globe and more than 20 VSAT hubs, and operates eight sales and support centers. Founded in 1999, SpeedCast is headquartered in Hong Kong, with offices in Beijing, Singapore, Dubai and Kuala Lumpur.
“As a profitable and rapidly growing company, SpeedCast ideally fits TA’s investment profile,” said Edward F. Sippel, Managing Principal – Asia Pacific at TA Associates, who will join the SpeedCast Board of Directors. “As one of the largest VSAT operators serving Asia, the Middle East and Africa, and one of the few with a multi-country footprint, SpeedCast has the opportunity to become the leading provider in a vibrant and burgeoning market. TA looks forward to collaborating with SpeedCast management to execute a strategy of organic and acquisitive growth.”
“We are pleased to welcome TA Associates as an investor in SpeedCast and to our Board of Directors,” said Pierre-Jean Beylier, CEO, SpeedCast, who will continue as CEO of the business. “We look forward to working with TA because of their demonstrated ability to add value to their portfolio companies, and because of their management-friendly approach. We see several near- and long-term opportunities for growth in our markets and will benefit from TA’s support on these endeavors.”
VSAT service revenues in Asia, the Middle East and Africa are projected to grow at an 8 percent compound annual growth rate (CAGR) over the next five years, approximately twice the rate of Western markets, according to industry analyst Comsys. The global maritime VSAT market is experiencing particularly robust growth. Comsys reported that worldwide maritime VSAT service revenues doubled to $800 million between 2004 and 2009.
SpeedCast is TA’s eighth investment in the region following its five earlier investments in India and two recent investments in companies operating in China—Forgame Tech Co., Ltd. and Aicent, Inc. These investments have spanned industries from telecommunications and technology to healthcare to mining services, and have been both minority investments and buyouts in growth companies. Goodwin Procter provided legal counsel to TA Associates.
