Telenor to Acquire COMSAT Mobile Communications From Lockheed Martin Global Telecommunications
OSLO, NORWAY and BETHESDA, MD, 27-MAR-01 -- Telenor of Norway (NASDAQ:TELN; OSE:TEL) and Lockheed Martin Global Telecommunications (LMGT) today announced that Telenor will acquire LMGT's COMSAT Mobile Communications operations for US$116.5 million in cash. The acquisition, which positions Telenor as a major global satellite mobile operator, is subject to regulatory approvals. COMSAT Mobile, with annual revenues in excess of US$100 million, provides global mobile communications solutions to the maritime, land mobile and aeronautical communities, and offers data, voice, fax, telex and video capabilities via the Inmarsat satellite constellation.
Telenor's purchase of COMSAT Mobile operations also includes two earth station facilities in Southbury, Connecticut, and Santa Paula, California. Linking the two U.S. stations with Telenor's existing earth station in Eik, Norway, will enable Telenor to offer true global coverage for satellite mobile communication services. Following the transaction, Telenor will be one of the leading Inmarsat global operators. Additionally, in September 2000, Telenor purchased a portion of LMGT's Inmarsat shares to become the largest owner of Inmarsat, holding the maximum permitted stake of 15 percent.
Stig Eide Sivertsen, chief executive officer of Telenor Broadband Services, commented, Our strategy has been to expand our position as a provider of global mobile satellite communications. Coupled with our strong presence in Europe, this acquisition will allow us to globalize our service offerings and give our customers the benefit of Inmarsat services on a worldwide basis from a single service provider. We expect this acquisition to enhance our operational efficiency and to further expand our already wide range of services.
John V. Sponyoe, chief executive officer of LMGT, a wholly owned subsidiary of Lockheed Martin Corporation (NYSE:LMT), said, This transaction is a positive step in the strategic direction of LMGT and it is consistent with steps to reshape our portfolio of assets to obtain maximum value for Lockheed Martin shareholders. Telenor has demonstrated its commitment to making the necessary investments to achieve economies of scale that will allow it to be a leader in the satellite mobile communications marketplace. We believe that consumers will benefit from this transaction through improved competition in the rapidly expanding mobile communications marketplace and the delivery of better solutions to end-users.
While the two companies pursue requisite regulatory approvals from the U.S. government, a process expected to be completed over the next several months, COMSAT Mobile will continue to operate as an LMGT business unit. Upon completion of the transaction, COMSAT Mobile will become a key part of the satellite mobile division of Telenor Broadband Services AS, operating through its wholly owned U.S. subsidiary, Telenor Satellite Mobile Services, a Delaware corporation. Telenor Broadband Services AS is one of four core business areas within the Telenor Group.
Telenor is a worldwide provider of high quality telecommunications, data and media communication services, with a particularly strong focus on mobile, internet and broadband services. Headquartered in Oslo, Norway, the company is present in over 30 countries, has more than 21,000 employees, and had revenues of US$4.2 billion in 2000. Internationally, Telenor has over the last years steadily increased its investments within mobile, Internet, TV-distribution and satellite communications.
LMGT delivers secure, reliable, advanced-technology products and services to help enterprise customers leverage their telecommunications and information technology assets. LMGT has annual revenues in excess of US$1 billion and employs 4,000 personnel worldwide with major points of presence in North and South America, Europe and Asia.
SAFE HARBOR STATEMENT: Some of the statements in this news release are forward-looking and relate to anticipated future operating results or events. Forward-looking statements are based on Lockheed Martin Corporation management's current expectations and assumptions, which may be affected by subsequent developments and business conditions, and necessarily involve risks and uncertainties. Therefore, there can be no assurance that actual future results will not differ materially from anticipated results. Completion of the sale of the COMSAT Mobile Communications business is subject to government approvals, including filings with the FCC and applicable federal and foreign antitrust authorities, and other closing conditions. The purchase price for the sale is subject to adjustments based on changes in the working capital of the business through the closing date. In addition, readers should refer to Lockheed Martin's disclosure documents filed with the Securities & Exchange Commission for specific details on some of the factors that may affect operating results. Lockheed Martin expressly disclaims any obligation to update forward-looking statements.