TA Associates acquires Hong Kong-based SpeedCast for $32m

Edward Sippel, managing principal of TA Associates Asia Pacific, and Michael Berk, managing director at TA Associates, will join the SpeedCast board. Pierre-Jean Beylier, CEO of SpeedCast, will remain in his position.

"While TA Associates only focuses on fast growing companies which are doing very well, we are always happy to have CEOs staying with us because we like their management styles,"  Sippel told AVCJ.

Established in 1999, SpeedCast primarily focuses on Asia, the Middle East and Africa. The company provides very small aperture terminal (VSAT) satellite-based broadband access services, managed networking solutions and value-added services to telecom carriers, internet service providers, governments and other enterprises in locations where wire-based communication is not possible.

VSAT service revenues in Asia, the Middle East and Africa are expected to see compound annual growth of 8% over the next five years, approximately twice the rate of Western markets. Revenues for worldwide maritime VSAT services doubled to $800 million between 2004 and 2009, according to industry analyst Comsys. Last November, SpeedCast also launched SeaCast, which serves the broadband needs of the maritime and offshore oil and gas industries.

In 2011, SpeedCast recorded a net profit HK$25 million ($3.2 million), up 9% from the previous year, based on revenues of HK$239 million, according to a regulatory filing.

"As one of the largest VSAT operators serving Asia, the Middle East and Africa, and one of the few with a multi-country footprint, SpeedCast has the opportunity to become the leading provider in a vibrant and burgeoning market," said Sippel.

SpeedCast is TA's eighth investment in Asia. It has previously completed five deals in India and two in China.

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• Topics
• Greater China
• Technology
• Buyouts
• TA Associates
• buyout
• Hong Kong (China)