BGF’s (Business Growth Fund) South West team, based in Reading and Bristol, has invested GBP12 million in Satellite Solutions Worldwide Group (SSW) to support the acquisition of Bristol based Avonline Satellite Services Holdings (ASSH).
Following the acquisition, SSW, which is headquartered in Bicester, will become the largest satellite broadband operator in the UK with significant economies of scale in terms of purchasing power of satellite broadband spectrum. The acquisition will see its customer base expanded to circa 35,000 throughout 31 countries in Europe.
A new GBP10 million investment comes on top of a GBP2 million investment made by BGF in April. The total investment of GBP12 million will help fund the acquisition alongside existing cash resources.
This is SSW’s eighth acquisition since joining AIM in May 2015, as the company pursues its ambitious growth plans. The UK government’s BDUK voucher scheme is expected to help underpin organic growth post completion of the acquisition as the enlarged company targets the estimated 300,000 properties across the UK that could benefit from the government’s decision to subsidise satellite broadband.
Satellite Solution Worldwide Group CEO Andrew Walwyn says: “Avonline is the UK’s largest satellite broadband provider, so combining it with our existing business gives us a tremendous position of strength within the burgeoning UK satellite broadband market.
“The acquisition generates a number of economies of scale and operational benefits which we already have plans to implement following completion. We also anticipate this new base will allow us to benefit considerably from the accelerated future roll out of the BDUK voucher scheme. I am delighted we have received further support from BGF which has enabled us to significantly strengthen our position in the UK.”
Sarah Ledwidge, Business Growth Fund, says: “BGF has been working with Andrew and his team for a number of months, having provided a small amount of funding earlier in the year. We have been extremely impressed by the business and team he has built in response to an exciting market opportunity. This was a great opportunity to provide a meaningful, long-term investment and to help accelerate SSW’s growth in the months and years ahead.
“This is BGF’s fourth significant investment since the Referendum vote, demonstrating that there are business owners and management teams that are forging ahead with their plans. That is a positive sign. No one knows the outcome of the next few weeks, but now is not the time for businesses to start putting the brakes on. Now is the time to keep investing, keep partnering and keep innovating – and that is something we are wholeheartedly committed to doing.”
The investment was led for BGF by Sarah Ledwidge in Reading and Alex Garfitt in Bristol.
