MIDDLETOWN – KVH Industries is set to acquire the software company Virtek Communications in a $6.5 million all-cash deal, KVH announced on Wednesday.
Norway-based Virtek specializes in the development and deployment of “middleware” software that helps commercial fleets and vessel owners manage the data transmitted to and from their vessels over different satellite communications services.
“The true value of this acquisition will be the synergistic effect that Virtek’s technology will have on our ability to sell and expand our mini-VSAT broadband service within the maritime market,” said Martin Kits van Heyningen, CEO of KVH. “Virtek’s CommBox technology complements and expands the comprehensive satellite communication concept that is at the heart of the TracPhone V7 and mini-VSAT Broadband solution.”
Virtek, which anticipates revenue of between $2 million and $3 million this year, has sold its CommBox system to more than 700 vessels in Scandinavia and northern Europe.
“The combination of the CommBox technology with the mini-VSAT broadband service creates a versatile end-to-end solution for mariners with powerful integration capabilities that reduce total communication cost while maintaining high flexibility and improved ship-shore and shore-ship communication,” said Morten Aasen, managing director of Virtek, adding: “We are preparing to offer a versatile solution ideal for virtually any commercial or leisure mariner in need of satellite communications and broadband access.”
With the CommBox technology, KVH anticipates being able to support a significantly larger population of users with its existing satellite capacity and being able to offer value-added services such as Internet cafes, advanced crew calling services, and premium content services, including chart and software updates.
The acquisition is expected to be concluded in the next few weeks pending normal closing procedures and adjustments. The Virtek team will function as a unit within KVH Industries.
