Anuvu announced the acquisition of Signal Mountain Networks, which designs, implements, and supports complex satellite, MPLS, and wireless network solutions for government and commercial clients. This purchase deepens our presence in an attractive and growing market segment—U.S. government communications—and provides cost-effective access to new revenue that leverages our global satellite capability.
The government satellite communications market is expected to increase to $4 billion by 2030. Moreover, Signal Mountain’s stable customer base and commercial prospects allow Anuvu to continue to diversify beyond the volatile travel industries we support in aviation and maritime.
Beyond the U.S. government, Signal Mountain also serves customers in the oil and gas, retail and industrial sectors. The company was founded in 2001 by Jonathan Huffman, an IT executive and retired U.S. Air Force officer.
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Press Release: Anuvu Acquires Signal Mountain, Expands Government Services Business
Q&A
Q: Why did we purchase Signal Mountain?
A: There are several reasons this acquisition is an excellent fit for Anuvu. Signal Mountain deepens our presence in the very attractive government vertical and it broadens our capabilities as we’re buying a U.S. Government “prime contractor,” which means we can bid on government business directly. Also, Anuvu supplies nearly all the bandwidth that Signal Mountain resells (which means we are taking out the middle man) so we have a very deep existing relationship with this company.
Q: What does this deal mean for Signal Mountain?
A: It means access to a far larger pool of resources to deepen their presence in the government vertical. While Anuvu is not a big company, we are substantially larger than Signal Mountain’s six-person shop.
Q: How will the organizational structure look?
A: Jonathan Huffman, Signal Mountain’s CEO, will become an employee of Anuvu Operations and report to Erik Carlsen, SVP of our Maritime, Energy and Government group. About five other Signal Mountain employees will report to Jonathan to ensure a smooth transition. Signal Mountain will initially be organized under Anuvu Operations as a wholly owned subsidiary.
Q: Will this transaction affect my team or my role?
A: No, there are no changes or other impacts expected for existing Anuvu or Signal Mountain employees. If anything, there will be a wider set of opportunities available to Signal Mountain employees within the larger organization.
Q: What makes government attractive as a business vertical for a deal like this?
A: The government’s satellite communications spending is forecast to rise nearly $1.5 billion in the next few years. One of our competitors, SES, recently made a similar U.S. satellite communications acquisition from Leonardo DRS, an Italian defense contractor, which further shows the strength of the sector.
Q: How do we expect to scale our government sales with Signal Mountain?
A: We expect Signal Mountain’s reach across the U.S. Government landscape and prime contractor capabilities will be immediately additive to Anuvu’s business. And while it’s difficult to predict the future trajectory, we are certain that this acquisition will add meaningfully to our bottom line.
Q: How quickly will we integrate Signal Mountain products/services into Anuvu’s portfolio?
A: Signal Mountain and Anuvu have been commercial partners for several years. In fact, Anuvu is the primary supplier of satellite capacity to Signal Mountain. Given this close relationship and the size of the acquisition, we anticipate a smooth and relatively swift integration.
Q: What’s the timeframe for Signal Mountain’s integration?
A: In the near-term nothing will change for current business, workflows or staffing at either company. Anuvu will take a methodical, thoughtful approach as we integrate Signal Mountain in the coming months.
Q: How will Signal Mountain’s office be integrated with Anuvu?
A: We have acquired Signal Mountain’s physical office in suburban Atlanta. However, most employees don’t work from an office location and are distributed widely as operations staff that maintain sites for the company’s government contract work.
Q: What should I tell customers when they ask about the acquisition?
A. When customers ask you can say the following:
Our acquisition of Signal Mountain is an exciting addition to the Anuvu portfolio and represents our continued growth in the government sector. Signal Mountain and Anuvu are aligned in terms of continuous stellar service to both companies’ customers and we’re excited about the many future growth opportunities.
