Colt Group announced in early November that it will be acquiring 100 percent of Asia's leading information delivery platform provider KVH Co. Ltd. Colt has agreed to purchase KVH for $160 million in cash.
Colt delivers integrated network, data center, voice and IT services to midmarket businesses and wholesale customers in 22 European markets, controlling a direct fiber network of over 20,000 buildings and 20 carrier-neutral data centers. Currently the company is targeting global customers in data-intensive industries. The acquisition will be beneficial to Colt's current efforts for global expansion and provide the company with the ability to deliver network coverage in multiple Asian markets.
"I am pleased to announce our plan to acquire KVH," said Colt CEO Rakesh Bhasin. "It is a growing business, largely focused on network and data centers in Asia. They have strong capabilities, a significant customer base and great assets, all complementary to our own. This partnership will enable Colt to offer our customers seamless solutions on a global basis and give us a solid platform for growth in Asia."
KVH is a delivery platform that owns infrastructure and delivers services to clients primarily in the Asia Pacific Region. The company is based in Tokyo, with operations in multiple Asian markets, including Osaka, Hong Kong, Shanghai and Seoul, as well as a North American office in Chicago. The acquisition will enable Colt to improve scale and access complimentary capabilities in key Asian cities.
KVH? CEO Ted Higase noted that Colt will benefit from the company's established platform in the Asia Pacific region, while KVH will be able to take advantage of Colt's existing customer relationships, operating experience and advanced processes.
The deal is expected to enhance cash flow for Colt from 2016 onward, but it has already been financially beneficial as Colt's share price increased 2.18 percent after the announcement.