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A UK reseller of mobile satellite services (MSS) looks set to acquire a US satellite technology company in a move that will extend its product range to include via satellite (VSAT) broadband products.

SatCom Group Holdings plc, a satellite communications company based in Salisbury, has agreed the conditional purchase of SDN Global in North Carolina, for $3.4 million (£1.7 million). The consideration will be satisfied with a cash payment of $1 million (£502,086) and $2.4 million (£1.2 million) in vendor notes.

This comes at a time when the MSS market, estimated to be worth $1.2 billion (£603 million) at a wholesale level, is forecast to rise 5 per cent annually (Lehman Brothers, October 2007).

SatCom chief executive Mark White says the relationship between the two companies spans several years and believes SatCom Group’s additional resources will enable SDN to grow significantly. “SDN will benefit from the additional mobile product range and services offered by SatCom and the global sales offices of the group.”

With offices in the US, Dubai and Asia, SatCom is a global reseller of airtime services and satellite systems hardware (mobile handsets and data terminals) for major satellite systems operators, including Inmarsat, Thuraya and Iridium. Key target markets include the US, Europe, Asia, and the Middle East.

Established in 1982, SDN provides connectivity and data continuity services for business applications. Last year, the company turned over $9.2 million (£4.6 million), with gross profit of $3.9 million (£2 million), EBITDA of $350,000 (£175,797) and net liabilities amounting to $740,000 (£371,707).

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