Eutelsat Communications has agreed to buy Bigblu Broadband’s satellite broadband activities in Europe for £38 million.
Bigblu Broadband is the largest distributor of satellite broadband packages in Europe. It has generated revenues of £35 million in 2019 with a low double-digit EBITDA margin.
Given the level of inter-company eliminations, the net contribution to Eutelsat’s revenues and EBITDA will not be material. But the acquisition will remove the necessity for the group to invest in the development of its own retail channel in Europe.
Rodolphe Belmer of Eutelsat said: “This deal represents an important step in our broader broadband strategy.”
Bigblu Broadband has developed a well-established platform for satellite broadband, relying on a unique network of installers and resellers.
The activities to be acquired by Eutelsat (BBB Europe) currently count around 50,000 subscribers across an expanding pan-European footprint which includes operations in the UK, Ireland, France, Germany, Italy, Spain, Portugal, Poland, Hungary and Greece.
The agreement coincides with the entry into service of EUTELSAT KONNECT, due to start gradually from fall 2020 with operation at full capacity expected from early 2021, bringing capacity in high-demand areas, improved end-user experience and unparalleled economics and flexibility.
With its scalable platform for direct sales including digital marketing platforms, multi-lingual call centers, billing and CRM systems, the integration of BBB Europe will enable Eutelsat to overcome the limitations of its existing indirect model.
The addition of this retail channel as a complement to wholesale agreements with telecom operators, such as the recent deal with Orange in France, will favour an accelerated ramp-up of upcoming capacity and the maximization of customer value over time.