SKY Perfect JSAT Agrees to Invest $4.5 Million in KVH
KVH Industries, Inc., (Nasdaq: KVHI), announced today that its longtime satellite capacity partner SKY Perfect JSAT Corporation (SJC) has agreed to invest $4.5 million in KVH as part of the two companies’ ongoing commitment to deliver next-generation maritime broadband services. KVH and SJC intend to collaborate on value-added services in the area of shipping digitalization and improved broadband access at sea.
KVH’s mini-VSAT Broadbandsm service is the market share leader in maritime VSAT worldwide; SJC, Asia’s largest satellite operator, provides maritime broadband service in Japan under the name “OceanBB plus.”
“For years, the collaboration of KVH and SJC has developed the Asian shipping market with excellent satellite communications services, and we look forward to continuing our relationship,” says Shinji Takada, SJC’s representative director, president, and chief executive officer. “Our investment is based on our conviction that KVH’s superior technology, equipment, and services are crucial at this time of digitalization in the maritime industry.”
SJC agreed to purchase $4.5 million of KVH common stock in a private placement at a purchase price of $11.95 per share, which represents a 10 percent premium over the average closing price of the KVH common stock over the 30 trading days before pricing. The transaction is subject to customary closing conditions and is expected to close later this week.
“We are thrilled to be continuing our relationship with SJC, which has been extremely significant as we have grown our mini-VSAT Broadband network into the #1 market-share leader in maritime VSAT,” says Martin Kits van Heyningen, KVH’s chief executive officer. “Working together, we can leverage our technologies and strengths in order to provide the faster, reliable global connectivity and the value-added services that the maritime industry needs.”
KVH, a mobile tech innovator, recently introduced the TracPhone® V7-HTS, a 60-cm satellite antenna system designed to provide download speeds of up to 10 Mbps and upload speeds of 3 Mbps, enabling vessels to benefit from marine applications designed to improve operational efficiency. It is the latest advancement from KVH, which introduced the first TracPhone VSAT system and the mini-VSAT Broadband service in 2007. KVH first began leasing satellite capacity from SKY Perfect JSAT in 2009 to expand the mini-VSAT Broadband network’s Asia-Pacific and Indian Ocean coverage; today, KVH’s maritime network covers 105 million square miles, making it one of the world’s most extensive maritime networks.
The products and services herein described in this press release are not endorsed by The Maritime Executive.