Inmarsat has appointed RigNet to distribute its Global Xpress and L-band services to the energy sector. The satellite firm also released details on the sale of its retail energy business to RigNet.
RigNet will become a key Global Xpress distribution partner for the global energy sector and will offer Global Xpress and L-band services to RigNet's growing customer base, said the firm.
In connection with the appointment, RigNet has entered into to a significant four-year Global Xpress capacity pre-purchase.
Inmarsat agreed to sell its retail energy operations, currently managed within the Inmarsat Solutions Enterprise business unit, for a total consideration of $25 million.
The sale will include Inmarsat's microwave and WiMAX networks in the US Gulf of Mexico serving drillers, producers and energy vessel owners; its VSAT interests in Russia, the UK, the US and Canada, its telecommunications systems integration business operating worldwide, and its retail L-band energy satcoms business.
In 2012, the operations subject to the sale had total revenues of $81 million. The overall transaction is expected to close during or before the first quarter 2014.
Mark Slaughter, RigNet's chief executive officer and president, said: "We are delighted to enter into this strategic partnership with Inmarsat. As the two companies came together for discussions over a number of months - with RigNet evaluating high-throughput satellite providers and Inmarsat seeking a strong distribution channel into the energy market for its Global Xpress offering - it quickly became clear that this deal represented the best path forward for both companies."