Panasonic Avionics acquires satellite services provider ITC Global
Panasonic’s subsidiary, Panasonic Avionics – provider of inflight communications and entertainment systems – has acquired ITC Global to diversify into global satellite services across the energy, mining and maritime markets. ITC Global currently provides over 1,200 remote sites across 70 countries with connectivity. This has been combined with Panasonic Avionics’ satellite network, covering 99 per cent of all airline flight hours (over 650 aircraft) and 98 per cent of all maritime traffic routes.
Bruner says that ITC Global is not just a complimentary business, with many synergies, but one that will diversify Panasonic Avionics market concentration. The acquisition has provided a combined satellite capacity that will allow the company to provide for larger demands. It is also keeping ITC Global's current workforce.
ITC Global will continue its current strategic plan under the leadership of Joe Spytek, ITC Global’s founder and CEO, who will report to Paul Margis, president and CEO of Panasonic Avionics. ITC Global’s management team will remain in place to continue its focus on its customers in the energy, mining, and maritime markets, with Panasonic Avionics focusing on customers in the aviation market. Panasonic Avionics is also in the process of adding global provision of high throughput satellite capacity.
“We’re going to give ITC Global more tools and resources so we can make them more effective in the marketplace,” explains Bruner. “They’ve been doing satellite communication longer than we have, especially in high-reliability environments, there’s been tools and services they’ve implemented that we can really learn from.
“A challenge in ITC Global is, in almost all the places it provides for: mines, oil rigs or a ship in the ocean, it’s really hard to hold crew if you don’t have, at the very least, broadband services so they can have communication with family and friends and entertainment. These people are cut off from anything.”
Airbus Defence and Space recently explained the details behind a multi-year multi-transponder agreement with SES to Land Mobile, which will see the companies delivering managed satcom services to corporate customers globally, but with a focus on African regions. Bruner is optimistic that Panasonic Avionics is ready to compete against it and views the company as good competition.
“Airbus is definitely a competing provider in maritime and energy,” he explains, adding that Airbus Defence and Space often competes aggressively aginst Panasonic bids. “I would say, proudly, that ITC is not the biggest [satellite communications provider] but is the fastest growing and has done a lot of recent business.”