KVH Industries Videotel Sold for $90 Million to Oakley Capital Affiliate

KVH Industries (NASDAQ:KVHI), a company focused on mobile connectivity services to naval and land forces announced that it has sold its elearning and video training platform Videotel for US$90 million. The platform was sold to a subsidiary of Oaklay Capital. In the past 12 months, Videotel generated US$17 million in revenue and US$3.1 million in operating income.

As quoted in the press release:

“As part of our long-term strategic roadmap, we are focusing on the large and growing markets of our core mobile connectivity and inertial navigation businesses,” says Martin Kits van Heyningen, chief executive officer of KVH. “We intend to use the net proceeds of the sale to invest in three key growth initiatives that we expect will drive significant value creation, as well as to reduce our debt. Specifically, we plan to invest in the development and commercialization of our photonic integrated chip technology for use in autonomous vehicles and other commercial and military platforms, to support the further acceleration of our AgilePlans (Connectivity as a Service) program, and also to finalize the development and launch of our IoT connectivity solution. Videotel helped us to penetrate the commercial maritime markets initially, but our strategic approach has evolved to focus on faster growing markets that we believe will produce greater long-term shareholder value.”

Click here to read the full press release.