Satellite Solutions Worldwide Group PLC (LON:SAT) is readying itself for a spending spree after it secured a new five-year, £5mln revolving credit facility with banking giant HSBC (LON:HSBA).
The rural and last-mile broadband specialist said it will use the money to fund further acquisitions as it looks to continue its roll-up strategy in existing markets, while also expanding into new territories.
Satellite’s chief executive Andrew Walwyn said the investment from a global bank such as HSBC is a “great vote of confidence” in the company’s acquisition strategy.
He added: “Importantly, this agreement shows we can now leverage our increasingly strong balance sheet and scalable platform as we integrate new companies into our rapidly increasing user base.
“The facility will be utilised to help fund a number of new acquisitions that are currently being considered, and I look forward to updating the market with progress in due course.”
At the start of this year, Satellite expanded its operations in France after it stumped up £870,000 to acquire the customers and assets of satellite broadband provider Auvea Ingeniere.
Last summer it also boosted its presence in Scandinavia and in the Asia Pacific after it snapped up Norwegian firm Breiburg and Aussie group Skymesh for a total of £11.7mln.
Those deals were completed just a few weeks after Satellite took out its UK rival Avonline for £10mln.
Shares opened slightly lower at 8.9p on Thursday morning.