TA Associates completes exit from Australia's SpeedCast

The private equity firm sold its remaining 13.1% interest through an underwritten block trade to institutional investors, according to a filing. The price was not disclosed. TA reportedly sold the shares for A$5.45 apiece, generating proceeds of A$170 million ($133.2 million). As of late morning trading on March 5, the stock was at A$5.42.

TA bought SpeedCast from Asia Satellite Telecommunications for $32.2 million, made a string of bolt-on acquisitions, and then took the company public through a A$150 million IPO. The private equity firm made a partial exit, selling 50.2 million shares alongside company management for A$1.96 apiece. Its equity interest fell to 24.6% from 81.6%.

As of March 2017, TA held about 31.3 million shares but its percentage ownership was lower than after the IPO due to the dilution effect of multiple entitlement offers and share placements through which SpeedCast funded additional acquisitions.

The company claims to be the world's largest provider of remote communications and IT services, with a network of more than 70 satellites as well as local support in over 40 countries. SpeedCast works with 2,000 customers in over 140 countries, chiefly serving the maritime, energy, mining and media sectors, as well as cruise operator, government, and non-governmental organization (NGO) clients.

Group revenue came to $514.2 million for the 12 months ended December 2017, up 136% year-on-year, while EBITDA rose 195% to $122.6 million and net profit increased from $19.2 million to $45.6 million. Energy and maritime sector clients each account for about 40% of revenue.

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• Topics
• Australasia
• Open market
• Technology
• Australia
• TA Associates
• Exit