Managed remote communication services provider RigNet has signed a deal to acquire Inmarsat's Energy Broadband business for $25m in cash.
Under the deal, Inmarsat will sell RigNet its energy broadband assets, including several networks in Russia, UK, US, and Canada.
RigNet will distribute Inmarsat’s Global Xpress (GX) and L-band services to the energy sector worldwide.
The company has conditionally agreed to buy a significant capacity from the high-throughput GX network during the four years once it enters operations.
RigNet expects to use GX and L-band services across its own business, as well as that of the acquired Energy Broadband business.
Subject to customary conditions and regulatory approvals, the transaction is expected to close during or before the first quarter of 2014.
RigNet president and CEO Mark Slaughter said, "As the two companies came together for discussions over a number of months — with RigNet evaluating high-throughput satellite providers and Inmarsat seeking a strong distribution channel into the energy market for its GX offering — it quickly became clear that this deal represented the best path forward for both companies."
"With the purchase of Inmarsat’s energy broadband business and the addition of GX and L-band to our transport options, we will broaden and deepen our capabilities to serve the oil and gas industry across the life of the field from drilling through production," Slaughter added.