PARIS - EADS has agreed to a $960 million deal by its space subsidiary, Astrium, to buy satellite communications provider Vizada as part of its drive to diversify into business services and expand in the U.S. market, the European aerospace and defense company said Aug. 1.
"Astrium, an EADS subsidiary, has entered into an agreement to acquire Vizada from Apax France, a French private equity fund and the majority shareholder, for $960 million," EADS said in a statement.
Vizada provides global communication services by packaging telecommunications capacity from commercial satellite operators for use by industry, government and nongovernmental organizations.
"The acquisition further balances the group's platform and services business and provides Astrium with an opportunity to develop new services," EADS said.
Vizada "has built up sizeable business with the U.S. government," according to the EADS statement.
The value of the U.S. government business was not available, an EADS spokesman said.
The U.S. activities include a contract to provide access to mobile satellite services for the U.S. government and military customers, EADS said. Other government clients include the French and German armed forces.
The maritime sector is seen as a source of growth, according to EADS.
"The growing demand for maritime services is a perfect cornerstone for Astrium to develop its commercial satellite communications (satcom) business," the company said.
Vizada expects to make $95 million in earnings before interest, depreciation and amortization, on sales of $660 million for 2011. The company employs 700 staff.
"This is clearly an accretive transaction for EADS shareholders and will generate significant synergies," said Marwan Lahoud, EADS chief strategy and marketing officer.
As part of EADS' Vision 2020 corporate strategy, the company seeks to reduce reliance on the Airbus airliner business, by boosting sales from services and defense.
The current and expected slashing of military expenditure in the home European markets of EADS has made it tougher to lift the defense side. U.S. competition has increased in world markets as American companies seek export contracts to offset planned domestic budget cuts.
"Astrium, an EADS subsidiary, has entered into an agreement to acquire Vizada from Apax France, a French private equity fund and the majority shareholder, for $960 million," EADS said in a statement.
Vizada provides global communication services by packaging telecommunications capacity from commercial satellite operators for use by industry, government and nongovernmental organizations.
"The acquisition further balances the group's platform and services business and provides Astrium with an opportunity to develop new services," EADS said.
Vizada "has built up sizeable business with the U.S. government," according to the EADS statement.
The value of the U.S. government business was not available, an EADS spokesman said.
The U.S. activities include a contract to provide access to mobile satellite services for the U.S. government and military customers, EADS said. Other government clients include the French and German armed forces.
The maritime sector is seen as a source of growth, according to EADS.
"The growing demand for maritime services is a perfect cornerstone for Astrium to develop its commercial satellite communications (satcom) business," the company said.
Vizada expects to make $95 million in earnings before interest, depreciation and amortization, on sales of $660 million for 2011. The company employs 700 staff.
"This is clearly an accretive transaction for EADS shareholders and will generate significant synergies," said Marwan Lahoud, EADS chief strategy and marketing officer.
As part of EADS' Vision 2020 corporate strategy, the company seeks to reduce reliance on the Airbus airliner business, by boosting sales from services and defense.
The current and expected slashing of military expenditure in the home European markets of EADS has made it tougher to lift the defense side. U.S. competition has increased in world markets as American companies seek export contracts to offset planned domestic budget cuts.
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