Multiemedia completes New Skies acquisition

Stuart Corner
Sunday, 13 November 2005 10:38

IT Industry - Deals

AS-listed Multiemedia has finalised its $13m acquisition of New Skies Networks (NSN) from Netherlands headquartered New Skies Satellites BV.

The company will become part of Multiemedia's existing satellite business, NewSat, and, according to CEO Adrian Ballantine, "will increase [NewSat's] sales opportunities and revenues...[and] will deliver immediate cash flow positive results for Multiemedia."

New Skies achieved total revenues of $22.9 million for the fiscal year ended 31 December 2004 and an after tax net profit of $5.4 million. According to Ballantine, it comes with "a very substantial back-log of contracted secure revenue over the next three years and will extend Multiemedia's reach into the oil, gas, mining, media and Government sectors."

He added "[New Skies]  also provides access to substantial future space segment for its long term requirements."