HISPASAT reaches an agreement to acquire the company AXESS Networks

March 21, 2022

HISPASAT and services provider of the Red Eléctrica Group, has reached an agreement to acquire the company AXESS Networks, a well-known teleport operator and satellite services provider with a presence in Latin America, Europe, the Middle East and Africa.

The acquisition of AXESS Networks is part of the actions defined in HISPASAT’s 2020-25 Strategic Plan, which aims to transform the company into a satellite solutions and services provider in its target markets. The operation implies the greater involvement of HISPASAT in the managed services value chain, thus increasing its proximity to customers and being able to adapt and quickly develop its solutions in a sector that is currently experiencing a major technological boom.

This operation will allow HISPASAT to optimize its offering in areas such as the extension of cellular networks via satellite, connectivity networks for corporate clients, or the digitalization of remote areas in countries with large technological gaps. Furthermore, it will enhance the development of solutions for emerging markets, such as the Internet of Things (IoT) or satellite 5G networks. The advantages of this merger will be especially notable in Latin America, a region where both companies maintain a very significant portion of their business.

AXESS Networks, recognized by the World Teleport Association as Independent Teleport of the Year 2021, has an infrastructure made up of teleports located mainly in Germany, Mexico and Colombia, as well as other installations in Peru, Chile and Saudi Arabia. Likewise, it has a broad customer base in industrial and corporate sectors related to telecommunications, oil and energy, and mining, among others; with critical operations in remote areas where service resilience and quality are extremely important. This acquisition will not affect the activities carried out by AXESS Networks, since it will maintain its operations, management, work teams and relations with customers and suppliers after this agreement.

Miguel Ángel Panduro, HISPASAT CEO, stated that “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. 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”.

Mauricio Segovia, AXESS Networks CEO, added that “the merger of AXESS Networks with HISPASAT represents a major leap for the company, since 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.

HISPASAT was advised by BBVA in this operation which, pending the required regulatory authorizations and other conditions precedent, values 100% of the capital of AXESS Networks at 96 million US dollars.