Filipino telecoms group Smart Communications has acquired a 30 per cent stake in maritime mobile phone provider Blue Ocean Wireless in a deal that values the Irish start-up firm at more than $55 million (€40 million).
The $15.9 million transaction provides instant access to one of the world's largest seafaring communities for Blue Ocean, which is backed by private equity firm Claret Capital, tech firm Altobridge and Bank of Scotland (Ireland).
Blue Ocean is targeting an untapped market of 1.25 million crewmen working in international merchant shipping. The company will provide a mobile phone service to seamen, who are not at present able to use their mobiles at sea.
Blue Ocean says its service will be more cost efficient and convenient. The company says almost half of all international seafarers live in the Philippines and estimates that half of them are already customers of its new investor, which has about 27 million mobile subscribers.
The deal enables Blue Ocean to accelerate the introduction of its service and provide a quick route to the market for SIM cards and pre-paid phone cards.
Smart is is a wholly-owned subsidiary of the New York-listed Philippine Long Distance Telephone Company, a group which has a market capitalisation of $11.23 billion.
The firm has bought a combination of primary and secondary Blue Ocean shares in its initial investment. In addition to providing back-office and other services to Blue Ocean, Smart also has an option to acquire another 30 per cent of the business within the next three years.
"We originally identified the Philippines as a key target market for Blue Ocean Wireless. Our partnership with Smart, therefore, is a natural fit for this business and a further significant step towards the development of Blue Ocean Wireless as the world's first GSM merchant maritime network," said Dómhnal Slattery, Blue Ocean chairman and Claret Capital chief.
Smart president Napoleon Nazareno said: "The innovative Blue Ocean Wireless service will enable seafarers to bring their mobile phones onboard their vessels and use them just as if they were at home."
