Speedcast provides satellite-based communication networks and services, enabling critical communications on land, at sea and in-flight.
Despite owning a controlling share, TA has always approached our relationship as a partner, not an ‘owner’, allowing us to run the business day-to-day. Since partnering with TA, Ed Sippel, Michael Berk and Tony Marsh have helped us complete 11 acquisitions, five debt deals and an IPO.
TA helped Speedcast:
- Source, analyze, diligence, finance and complete 12 complementary acquisitions on six continents
- Complete five debt transactions to support expansion
- Expand globally into Europe, Africa and the Americas
- Recruit a new CFO, several senior staff and a world class Board of Directors comprised of four independent directors, all former CEOs of major telecom companies
- Upgrade reporting and operating systems across the company
- Scale infrastructure, systems and control environment to prepare for the company’s IPO
- Complete a successful IPO on the Australian Stock Exchange (ASX:SDA)
Speedcast is a remote communications and IT solutions provider offering high-quality, multi-access-technology, multi-band and multi-orbit services in over 140 countries. With a worldwide network of 40 sales and support offices and 40 teleport operations, Speedcast has a unique infrastructure to serve the requirements of customers, with over 2,500 customers across more than 5,000 terrestrial sites and 10,000 offshore rigs and vessels globally. The company focuses on tailored solutions to five key customer segments: telecommunications, maritime, energy and natural resources, government & NGO, and enterprise. Speedcast completed its IPO in August 2014.
The Investment Opportunity
In 2012, TA partnered with management to complete a buyout of Speedcast from AsiaSat (HKG: 1135), a regional satellite operator listed in Hong Kong. Speedcast, predominantly focused on Greater Asia at the time, offered TA the opportunity to acquire a platform company in the highly fragmented satellite communications market and pursue a consolidation strategy in a sector poised for continued growth. Speedcast chose to partner with our firm given our global resources, proven ability to help source acquisitions, experience investing in the communications sector and management-friendly approach.
Adding Value to Scale Growth
Over the course of TA’s partnership with Speedcast, we have worked closely with Speedcast’s management team to identify areas where TA could add value and support the company’s vision of becoming the market leader in VSAT (Very Small Aperture Terminal) satellite services. Our firm has helped Speedcast, strategically and operationally, starting with its initial complex corporate spin-out from AsiaSat, to helping source and integrate twelve acquisitions on six continents, complete five debt deals, build out a management team and Board, improve infrastructure and systems, and ultimately complete an IPO.
Today, Speedcast is a publicly-traded company that owns and operates one of the world’s largest and most reliable satellite networks. Speedcast has over 4,500 terrestrial sites and approximately 10,000 offshore rigs and vessels, servicing over 2,200 customers out of more than 39 teleports globally.
Case studies have been selected for illustrative purposes for management teams of growth companies considering a partnership with TA and should not be considered an offer or solicitation of services or an actual or implied endorsement of TA or any security, investment or portfolio company. The portfolio companies highlighted are not representative of all current and prior investments of TA. A list of investments for the past 25 years is available on this website.