Acquisition Reshapes SATCOM Industry
MIT 2009 Volume: 13 Issue: 11 (December)
SEEN INCREASING THE BREADTH AND SCOPE
OF OFFERINGS TO THE GOVERNMENT.
(Editor’s Note: Inmarsat, a provider of global mobile satellite communications services, announced in November that it had acquired Segovia, a provider of secure Internet protocol managed solutions and services to the Army and other U.S. military services and government agencies. Following are statements about the acquisition from executives of the two companies.)
A Strategic Alignment
BY REBECCA M. COWEN-HIRSCH
The acquisition of Segovia is a strategic enhancement of Inmarsat’s position as a provider of reliable, cost-effective and secure mobile communications via satellite to military and other government users worldwide. Segovia’s ability to integrate satellite and terrestrial assets into secure networks for the U.S. military and other governments is ideally suited to the Department of Defense’s evolving strategy of seeking end-to-end solutions from commercial SATCOM and network providers.
The expertise of Segovia’s dedicated professionals in designing and operating IP-based communication networks fits well with Inmarsat’s long-standing reputation as the world’s leading provider of mobile satellites. This alignment will increase the ability of both companies to leverage their strengths and their extensive secure network infrastructures to better support the warfighters and other government customers.
Segovia provides the U.S. DoD unparalleled support to expeditionary operations, net-centric warfare, and interoperable secure networks through end-to-end managed and secure services. The strategic partnership resulting from this acquisition will benefit Inmarsat users, as well as foster the extensive relationships maintained by Segovia both here in the United States and abroad. Segovia will continue as a service provider of Inmarsat BGAN services while serving its own unique customer base with a broad set of fixed satellite service (FSS) commercial SATCOM solutions using Cand Ku-band satellite capacity offered by a range of FSS operators.
After the transaction closes in early 2010, Segovia will maintain normal operation as a stand-alone company within the Inmarsat group, with its executive management and leadership team staying in place and reporting to Jim Parm, president and chief executive officer of Stratos, Inmarsat’s direct distribution business. Segovia will remain exclusively a U.S.- based company operating under a proxy board arrangement. Inmarsat Government Services will continue as a wholesaler of satellite airtime and unique MSS and commercial SATCOM policy and solutions expertise to the government.
Inmarsat’s satellites use state-of-theart IP technology and the company’s global network has the highest level of reliability in the industry. Segovia and Inmarsat are trusted partners with government customers, working closely with users to help them take best advantage of the widest range of capabilities. Both companies offer the best value in secure warfighter satellite, terrestrial and integrated network solutions. By adding Segovia’s managed-services capability and secure network to Inmarsat’s already-strong position in the government market, the companies will enhance their combined ability to deliver essential mobile and portable satellite communications solutions to U.S. and allied military customers.
Both Segovia and Inmarsat are committed to network security, mission assurance, and best value for a wide range of government customers on a global basis. The strategic alignment of this acquisition will increase the breadth and scope of these offerings to the government while maintaining Inmarsat’s commitment to its rich and extensive distribution channel. ♦
Rebecca M. Cowen-Hirsch is president of Inmarsat Government Services.
Platform for the Next Level
BY MIKE WHEELER
Segovia is excited to join forces with Inmarsat, and we believe the combination is the perfect platform for reaching the next level in secure global IP networking. Once the merger is finalized, Segovia will become an indirect wholly owned subsidiary of Inmarsat Group. We will establish an independent proxy board of directors to meet the Department of Defense’s foreign ownership mitigation requirements.
Segovia’s name, team and core services will remain the same, and our customers and partners will continue to receive the outstanding service and technology that they always have. Additionally, Inmarsat’s organizational depth and breadth will strengthen our position as a premier supplier of secure network solutions to the U.S. government.
We are confident that Segovia’s turnkey managed services will complement and expand Inmarsat’s capabilities with additional customer and services expertise for its worldwide customer base. We also anticipate mutual growth opportunities among global government and enterprise audiences for both organizations.
Overall, we look forward to Segovia and Inmarsat leveraging our combined strengths to create a broader market, higher customer profile and increased value for both customers and shareholders. As we work together to expand our solutions portfolio with a wide range of leading innovative technologies, the customers who already depend on us for secure communication solutions around the world will receive even more diverse end-to-end broadband solutions, brought to them by a truly global, best-in-class communications provider. ♦
Mike Wheeler is president and chief executive officer of Segovia.
