Pivotel makes US double acquisition, flags further acquisitions
Australian mobile carrier Pivotel has acquired two US-based mobile satellite solution businesses, MVS USA and Explorer Satellite Communications, through its US based subsidiary Pivotel America.
Pivotel says the double acquisition is expected to see its annual revenue jump to more than $120 million US$85M in 2019/20.
Pivotel has now acquired four international companies within two years with the two new businesses joining North American maritime solutions provider Global Marine Networks, acquired in 2017, and Wellington, NZ-based mobile satellite communications provider Wright Satellite Connections, acquired in 2018.
Peter Bolger, chief executive officer of Pivotel, says he is motivated to continue the search for further acquisitions that bring in essentials skill sets and capabilities, access to new markets and an expanded pool of customers.
“Through acquisitions such as these we are able to access new technology capabilities as well as new markets. In the telecommunications business, scale is always important,” Bolger said.
“We expect to achieve synergies at the network level which will drive improved margins across our now expanded customer base and increase the opportunity to sell our existing solutions to new customers and new markets.
“We have historically invested up to 10% of revenue on R&D, developing new and better solutions that simplify the use of satellite communications, improve its affordability and deliver the effective outcomes our customers are seeking. By having access to more markets and a larger customer base we can get better returns on our R&D investments.”
The statement from Pivotel says that Robert Sakker, President of Pivotel America, sees the acquisitions as highly complementary to Pivotel’s existing operations and to each other, important factors in the company’s broader growth strategy.
“With a significant base of retail customers across the Americas, a strong network of reseller partners around the world, and a talented team of professionals, MVS not only provides an immediate revenue lift but also provides enormous potential to accelerate our organic growth,” Sakker said.
“In addition, the MVS FLEXX service management platform is world class and will further enhance Pivotel’s existing service management capabilities.
“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 amazing sales success despite its relatively small size, and we think they will do great things with the resources of Pivotel behind them and access to a stronger portfolio of products and services,” Sakker concluded.