Inmarsat and RigNet – a leading global provider of managed remote communications solutions to the oil and gas industry – have signed a wide-ranging strategic transaction.
Under the agreement, RigNet will become a Global Xpress distribution partner for the global energy sector and acquire Inmarsat's retail energy business.
Rignet has also signed up to a four-year Global Xpress capacity pre-purchase deal.
Inmarsat is selling RigNet its retail energy operations – currently managed within the Inmarsat Solutions Enterprise business unit – for US$25 million.
The sale to RigNet will include:
• Microwave and WiMAX networks in the US Gulf of Mexico, serving drillers, producers and energy vessel owners
• VSAT interests in Russia, the UK, US and Canada
• Our worldwide telecoms systems integration arm, and
• Our retail L-band energy satcoms business.
In 2012, the retail energy operations earned total revenues of US$81 million.
The overall transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close during or before the first quarter 2014.
Press release: www.inmarsat.com