KVH Incorporates Videotel
KVH Industries, Inc., World Headquarters, Middletown, RI, U.S.A.KVH Industries, Inc., has acquired Videotel, a provider of maritime training services, video, animation, e-Learning computer-based training (CBT), and interactive distance learning courses.
“We already offer maritime companies crew connectivity through our mini-VSAT Broadband network, including Internet café, Voice over IP phone calls, and crew entertainment services via our IP-MobileCast™ service.
With this acquisition, we will now also offer an extensive library of seafarer training courses and related training services,” said Martin Kits van Heyningen, KVH’s chief executive officer.
The $48.9m transaction is anticipated to be accretive to KVH earnings per share in 2014.
The company financed the transaction from its cash on hand and proceeds from a new credit facility.
The audited financial statements of the acquired Videotel group companies showed annual combined revenues in 2013 of $23.9m, of which approximately 93% was derived from multi-year subscription-based services.
During 2013, Videotel’s combined gross profit margin was approximately 73%.
Press Release, July 4th, 2014
