The acquisition is part of a larger strategic plan for Hispasat to become a satellite solutions and services provider
Spanish satellite operator Hispasat has announced the acquisition of Axess Networks, a teleport operator and satellite services provider with a presence in Latin America, Europe, the Middle East and Africa.
“We are very pleased with the agreement reached with Axess Networks, an action that responds to the increasingly essential collaboration among industry players with the aim of meeting society’s demands for connectivity,” commented Miguel Ángel Panduro, Hispasat CEO. “In recent years, several operations of this type have occurred in the sector and our partnership with Axess Networks will provide us with optimum strategic positioning in two areas that have huge potential for growth in satellite communications: Latin America and the B2B solutions market.”
The acquisition of Axess Networks, valued at $96 million, is part of Hispasat’s larger 2020-2025 Strategic Plan, which aims to transform the company into a satellite solutions and services provider in its target markets. As a first step in this plan, the company in April 2021, signed an agreement to take over the management and signal transport business of Media Networks Latin America, a subsidiary of the Telefónica Group involved in multimedia.
According to Hispasat, its merger with Axess Networks will increase the company’s “proximity to customers” and allow for the quicker development of solutions “in a sector that is currently experiencing a major technological boom.”
Recent progress made by SpaceX — Elon Musk’s private American aerospace company — and others like Arianespace and Ligado Networks, does indeed suggest that the satellite market is booming as companies look to satellite connectivity to help close the global digital divide.
But beyond providing internet connectivity to underserved locations, Hispasat said that the deal “will enhance the development of solutions for emerging markets, such as the Internet of Things (IoT) or satellite 5G networks,” adding that Latin America, in particular, will feel the positive impact of this merger, as it’s a region where both companies “maintain a very significant portion of their business.”
For Axess Networks, whose infrastructure is made up of teleports located mainly in Germany, Mexico and Colombia, as well as other installations in Peru, Chile and Saudi Arabia, the merger with Hispasat “represents a major leap for the company.”
“It demonstrates great support from one of the industry’s most relevant players and it allows us to integrate and strengthen the joint value proposition towards our markets. With this operation, we begin to form part of a leader that creates trends in the market and whose projects have a clear social background,” commented Mauricio Segovia, Axess Networks CEO.
