KVH Industries, Inc., announced today that its longtime satellite capacity partner SKY Perfect JSAT Corporation (SJC) has agreed to invest $4.5 million in KVH as part of the two companies’ ongoing commitment to deliver next-generation maritime broadband services. KVH and SJC intend to collaborate on value-added services in the area of shipping digitalization and improved broadband access at sea.
SJC agreed to purchase $4.5 million of KVH common stock in a private placement at a purchase price of $11.95 per share, which represents a 10 percent premium over the average closing price of the KVH common stock over the 30 trading days before pricing. The transaction is subject to customary closing conditions and is expected to close later this week.
“For years, the collaboration of KVH and SJC has developed the Asian shipping market with excellent satellite communications services, and we look forward to continuing our relationship,” said Shinji Takada, SJC’s representative director, president, and chief executive officer. “Our investment is based on our conviction that KVH’s superior technology, equipment and services are crucial at this time of digitalization in the maritime industry.”
“We are thrilled to be continuing our relationship with SJC, which has been extremely significant as we have grown our mini-VSAT Broadband network into the #1 market-share leader in maritime VSAT,” said Martin Kits van Heyningen, KVH’s chief executive officer. “Working together, we can leverage our technologies and strengths in order to provide the faster, reliable global connectivity and the value-added services that the maritime industry needs.”
