SpeedCast International Limited, a global satellite communications service provider, today announced it has signed a definitive agreement for the acquisition of Hermes Datacommunications International Ltd, (“Hermes Datacomms”), a leading global provider of managed network services for the upstream oil and gas industry. The acquisition will create a new global force providing communications and IT services to the energy sector; significantly strengthening SpeedCast’s capabilities to serve and support energy customers worldwide, enhancing its portfolio of managed solutions, and bolstering its global network with new points of presence in key energy markets around the globe -- including Russia, Central Asia, South East Asia, the Middle East, and North, West and East Africa.
Hermes Datacomms has over 20 years of experience providing managed services to the upstream oil and gas industry. It offers service in over 54 countries, representing 92% of the world’s oil & gas reserves and has an extensive portfolio of blue chip energy customers. The company specializes in providing a broad range of communications services including satellite communications, fibre connectivity and radio services for the oil & gas industry, to some of the most remote and challenging locations in the world, both onshore and offshore. Solutions are tailored specifically to oil & gas customers' needs and include international or domestic point-to-point connections, managed networks, oilfield communication infrastructure and IT services.
Hermes Datacomms is based in Shrewsbury, United Kingdom and owns a state-of-the-art Network Operation Centre (NOC) as well as a teleport, located at their UK headquarters. The NOC was designed from the bottom-up to give customers real-time monitoring and enhanced service levels, providing 24/7 proactive monitoring and support, and rapid customer response.
With this acquisition, SpeedCast is well positioned to become a top 3 player in the energy services space and serve as a credible and reliable alternative to the existing incumbents. The combined entity will have significantly enhanced capabilities to serve and support energy customers worldwide, with an extended staff located in the primary energy markets around the world. The acquisition will benefit SpeedCast’s existing global energy customer base, as SpeedCast leverages Hermes Datacomms’ infrastructure, local presence and experience, to augment its own global network and provide a superior customer experience. The energy sector continues to be a long term area of growth for satellite services, and promises to be an ongoing source of growth for SpeedCast as the company leverages the strength and scale of the new combined entity to win market share.
“This game changing acquisition opens a new chapter for our energy business, greatly expanding the scale, scope and capabilities of our business,” said Pierre-Jean Beylier, CEO of SpeedCast. “Hermes Datacomms has amazing experience servicing oil & gas customers in very demanding locations. It is an ideal fit for SpeedCast and a very important milestone towards our objective to be a leading global player in the energy sector, following previous steps taken with the recruitment of Keith Johnson and the announced acquisition of Geolink. Hermes Datacomms is a unique asset that brings us capabilities and relationships that would otherwise be difficult and long to acquire. There are extensive synergies for the unified company, which will further enhance our ability to deliver complete end-to-end solutions to our customers globally. SpeedCast is now strongly equipped to compete globally in the oil & gas sector and deliver long term growth.”
“This acquisition further validates our investment and commitment to build a significant global energy service provider at SpeedCast. The new combined SpeedCast Energy Division will provide our global customers with the geographic scale and reach required to provide exceptional customer service in the key countries where drilling and production occur,” said Keith Johnson, SVP and GM of SpeedCast Energy Division.
Joining SpeedCast, Hermes Datacomms will now be able to offer its customers a wider portfolio of products and services, and better serve its customers’ needs worldwide. SpeedCast field engineering presence in key oil & gas markets like Australia, PNG, and Indonesia, will enhance the level of local support available to Hermes Datacomms’ customers. The combined capabilities of SpeedCast and Hermes Datacomms will provide best-in-class services to their customers. Hermes Datacomms’ UK teleport will complement SpeedCast’s existing global infrastructure and network.
“Hermes Datacomms and SpeedCast have a shared vision to be the leading provider of communications to the Energy sector globally,” said Giles Middleton, CEO of Hermes Datacomms. “With our experience and reach in the oil and gas sector and SpeedCast’s global network and scale, this acquisition will enable a unified goal to achieve that vision. We will leverage our combined skills, expertise and global network to continue to offer unprecedented levels of service and support to our customers”. Hermes Datacomms management team will remain with the SpeedCast group.
This acquisition follows the creation in October 2014 of an Energy Division aggregating all of SpeedCast's energy business under the leadership of Keith Johnson, and the opening of SpeedCast’s new Houston office. The acquisition also complements the announced acquisition of Geolink, as it completes the strengthening of SpeedCast’s capabilities in Africa.
SpeedCast expects to complete the acquisition by 25 March 2015.
Adapted from a press release by David Bizley