Broadband Satellite Services, LTD

Introduction

When communications are needed in remote locations, AND Group gets the call. For nearly three decades, the U.K.-based firm has been a leading provider of global satellite services to sites with limited access. Over the years, AND Group has been retained for merchant and military vessels, offshore platforms, mines and other private and government clients in isolated areas.

Challenge

The AND Group Management Team wanted to buy the company along with another firm called Satcom, and then merge the two into a new company called Broadband Satellite Services LTD. While they had the resources to purchase one of the companies, buying both would require that a complex M&A transaction be put in place. However, 90% of both company’s sales were overseas in various currencies, and UK lenders didn’t feel comfortable with that much foreign collateral. The deal needed to happen quickly and involved additional debt providers including a second mezzanine lender and sellers’ notes. The investment banker turned to FGI for help.

Solution

By leveraging sales from both AND Group and Satcom, FGI established a credit facility against all the receivables; domestic and international in different jurisdictions around the world. That financing sealed the acquisition of the two companies, and is funding growth for the combined entity.

Results

FGI took a complex deal and turned it into a successful acquisition and growth story. The combined firm has more than $100 million in global revenues, with strong projections. Combining the network assets of AND Group and Satcom Global helped the two companies, strengthening their end-to-end solutions capabilities in key areas, and providing the best possible customer experience.