Marlink has been busy in 2017 with mergers and acquisitions that are set to make them a main contender in the maritime communications market for the future, writes Samantha Fisk
One of the modern aspects that are becoming a »norm« for the shipping industry is the use of internet onboard[ds_preview] vessels. With new technologies being developed that are reliant on the internet for transfer of data from ship-to-shore and the use of internet by crew personnel onboard, the market for communications is opening up with new demands on the horizon. Catering for the demand of internet access, whilst still facing financial pressure from the downturn in other markets has opened up companies to consolidation. Erik Ceuppens, CEO of Marlink, explains about the fragmented market that: »Yes the market is fragmented, but in maritime this has always been the case. In future we will see more consolidation.« 2017 was a »very strong year« for Marlink, with six companies being brought onboard the flagship communications company, doubling its turnover over the last two years. Marlink says that with these recent acquisitions it will help them grow and develop its product portfolio for future market demands. Ceuppens explains that: »Our strategy is not just to expand the reach of our customer base, but it is to position Marlink as the leading player in the different maritime areas.« Ceuppens also explains that with the recent M&A developments the company is looking to strengthen the group with further acquisitions in the future. However, he adds that the acquisitions over the past year and in the future will be »select decisions«, looking at companies that will add to the portfolio. The six acquisitions in 2017 saw company names such as Telemar, Radio Holland and TNL brought in to Marlink. Telemar will be operating under the Marlink name in 2018, but will still sell bridge and systems under the Telemar name as well. Radio Holland will enhance Marlink’s airtime activity by taking over the Radio Holland VSAT MIS customer base. Radio Holland will still trade under its name as well as through the Marlink brand. Marlink is working on a joint venture with TNL, which aims at addressing the needs of the local market in Greece and Cyprus. Cyber solutions and new markets The acquisition of Palantir will bring Marlink the specialism in digitalisation and will allow the company to broaden its portfolio of digital solutions for the market. »Palantir has been set up as a product house,« explains Ceuppens. Marlink has also said that with Palantir it will also be looking to develop better cyber solutions for the market. December saw two acquisitions that of OmniAccess, which looks to have the deal completed by March, and Livewire that has been acquired to build upon the company’s mega yacht portfolio. Marlink says that a new market segment is starting to open up for communications in the mega yacht market, which is going to be one of its main focus points. Due, also, to further development of satellite technology with more LEO (Low Earth Orbit) systems being constructed that will also open up airtime for many customers. As part of its further growth Marlink is going to be a launch partner with the Iridium Certus programme. President Tore Morten Olsen says that: »We believe that modern routes are going to be important. We believe that a system that has multiple satellites covering the same geographical area is important and it brings diversity to the geostationary VSAT system.« With further demand for digital compatibility coming in to the maritime industry from the leisure market and also business sectors, Marlink believes that with the foreseen availability of bandwidth coming in the future there are further opportunities for the company to develop in these areas.
