COMSAT Completes Acquisition

Lockheed Martin retains a 19 percent interest in the managed fiber, wireless, and satellite network that will now be majority owned by privately held COMSAT International Holdings (CIH).

by Roy Mark of internetnews.com [October 21, 2002]

COMSAT International Holdings (CIH), the former World Data Consortium, has completed its acquisition of COMSAT International (CI) from Lockheed Martin. With the closing, CIH takes an 81 percent ownership position in CI. Lockheed Martin retains a 19 percent interest in the company.

Additional details of the agreement were not disclosed.

Lockheed Martin announced in December its intent to exit the telecommunications business to streamline its operations and to focus on its core business of systems integration, space, aeronautics and technology services.

Bethseda, Md.-based CI provides domestic, regional, and international data and voice services through a managed fiber, wireless, and satellite network to Latin American markets including Argentina, Brazil, Colombia, Mexico, Peru and Venezuela.

CIH, based in Washington D.C., is a privately held telecommunications investment and management company. Company officials said CIH sees the acquisition as an opportunity to leverage CI's financial stability and strong network to support CIH's growth strategy.

CIH plans to grow through the acquisition of both new customers and the strengths of new complementary assets.

"We are reaching a point in the telecommunications industry at which there will be an increasing flight to quality," said CIH chairman George Kappaz. "COMSAT International is one of the great survivors in the industry from a financial standpoint and one of the clear leaders from a technological standpoint."

Tim Harmon, CIH's CEO, added, "The current difficulties provide opportunities for us to acquire assets on favorable terms that will allow us to enhance our service offerings and reach."

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