KVH to Acquire Virtek Communications AS
KVH Industries, Inc., (Nasdaq: KVHI) and Virtek Communications AS announced that they have entered into an agreement for KVH to acquire the software company. Virtek specializes in the development and deployment of software known as “middleware” that helps commercial fleets and vessel owners manage the data transmitted to and from their vessels over different satellite communications services, such as KVH’s own mini-VSAT Broadbandsm or Inmarsat FleetBroadband.
“Virtek, its talented team of software engineers, and its proven middleware applications are an excellent fit with KVH and our rapidly expanding satellite communication business, most notably in the commercial marine market,” explained Martin Kits van Heyningen, KVH’s chief executive officer. “The capabilities offered by Virtek’s CommBox technology complement and expand the comprehensive satellite communication concept that is at the heart of the TracPhone V7 and mini-VSAT Broadband solution. The integration of this powerful middleware technology will strengthen our competitive position in the maritime broadband marketplace, enable us to offer a wide range of value-added functionality to customers, and provide a path to enhance the efficiency and versatility of our mini-VSAT Broadband data communications network.”
Founded in 2000, Norway-based Virtek has sold its CommBox system to more than 700 vessels owned by 50 different shipping companies primarily based in Scandinavia and Northern Europe. Currently, Virtek anticipates 2010 revenues to be in the range of $2 to $3m. The $6.5m all-cash acquisition is subject to normal closing procedures and adjustments and is expected to be concluded in the next few weeks.
