Business
Calian Enters into Definitive Purchase Agreement to Acquire US Satellite Communications Provider Hawaii Pacific Teleport
OTTAWA, ON / ACCESSWIRE / March 9, 2023 / Calian® Group Ltd. (TSX:CGY), a diverse solutions...
About this update from Calian Group Ltd.
[{"type":"text","content":"Calian Enters into Definitive Purchase Agreement to Acquire US Satellite Communications Provider Hawaii Pacific TeleportOTTAWA, ON / ACCESSWIRE / March 9, 2023 / Calian® Group Ltd. (TSX:CGY), a diverse solutions company, providing innovative healthcare, communications, learning and cybersecurity products and services, is entering into a definitive purchase agreement to acquire the assets of US-based Hawaii Pacific Teleport (HPT) for up to CAD$62M (US$46M). The amount paid on closing is CAD$47M (US$35M) and contains earnouts of up to CAD$15M (US$11M) based on the achievement of certain level of EBITDA performance over the next 24 months.HPT has operated for over 20 years as an independent teleport and continues to be the first choice in Asia Pacific satellite communications solutions. Leveraging its service locations across the Hawaiian Islands and Guam, HPT provides secure, contiguous connectivity throughout the Asia Pacific region from its strategically located U.S. based locations.HPT's independence in the industry provides its extensive list of top-tier customers a single source location to come together and capitalize on their respective services via its satellite gateways, datacentre, media management centre, and terrestrial networks. Leeana Smith-Ryland will remain as CEO of HPT and will facilitate the integration of HPT into the Calian Advanced Technologies (AT) space division.The acquisition of HPT into the AT space division is expected to add revenues of approx. CAD$18M, with a strong mix of recurring revenue from global satellite operators. Calian expects the acquisition to be accretive from a gross margin and EBITDA margin immediately as its margins are significantly higher than AT and the consolidated level.\"HPT brings a track record of excellence in providing communication and teleport services across the United States and the Pacific,\" says Patrick Thera, President, AT. \"The technical capabilities of Calian and HPT, combined with deep customer relationships, will help position us as a key player in the global telecommunication market.\"Location is considered a key differentiator for those offering teleport services to minimize issues like latency and interference, and the addition of HPT allows Calian to offer a full suite of services from design, installation and teleport services to satellite operators gl...