Hong Kong based satellite communication service provider Speedcast has acquired assets in Australia including two teleport facilities on the cheap in a liquidation sale.
The company has acquired the teleport and satellite business of NewSat, a struggling satellite provider that entered administration earlier this year, and was placed in receivership weeks ago.
Australian media reports suggest that the acquisition price was a mere A$12 million ($8.9 million), a fraction of the assets' value.
NewSat had been building its A$611 million Jabiru-1 satellite project, but struggled to find ways to raise the funds needed for the project.
Before being placed in receivership, both satellite builder Lockheed Martin and launch partner Arianespace had been threatening to withdraw unless NewSat could raise more funds and pay more of what they had promised.
SpeedCast will also acquire most of NewSat's customer and supplier contracts - including resellers, enterprises and governments - as well as 20 key NewSat employees.
SpeedCast CEO Pierre-Jean Beylier said the Australian assets will complement the company's existing infrastructure in Australia and APAC. The company also has assets in the middle east and Africa.
“Our well established Australian network, augmented by NewSat’s infrastructure assets and customer base, will enable us to expand our presence in the market, in particular with government... customers to which we can sell additional services globally,” he said.