The deal valued SSW at £5.19 million which were satisfied by the issue of 115,384,615 consideration shares at a price of 4.5p each. SSW has subsequently changed its name to Satellite Solutions Worldwide Group.
The newly listed company has raised a further £2.25m through the issue of 50 million new ordinary shares at a price of 4.5p to new and existing investors.
UK based provider SSW supplies broadband services around Europe underneath its Europasat brand. It uses capacity from Eutelsat, SES and Avanti to offer broadband services. It is also currently in talks with satellite operator ViaSat to enhance its offering.
Rodger Sargent, Cleeve's largest shareholder said "We listed Cleeve with the aim of completing an acquisition within the TMT sector. The quality of SSW's management team and offering provided with what we felt was the perfect investment opportunity and we look forward to creating value for existing and new shareholders."
In a statement to the stock market, SSW said "The enlarged group intends to pursue a 'roll-up' strategy, which is one of the principle reasons behind the acquisition and admission. SSW has been involved in advanced talks and conducted due dilligence on a number of potential acquisition targets prior to commencement of the acquisition process, and it is intended that the enlarged group will continue such discussions and complete the acquisition of one or more of these potential targets.
The directors of the group have identified a number of other potential acquisitions targets throughout Europe and believe that in some cases the owners of these target assets may be willing sellers.
This may be as a result of the target company/ asset not being able to reach 'critical mass' in terms of the number of users required to be profitable, or for others the asset may now be viewed as a non-core business, or it it may be due to the owners lacking the required capital to invest in the asset to take the business to the next stage."
SSW plan to fund the acquisitions through a mix of cash and share issuances to the seller. The company currently has cash resources of approximately £5m.
SSW plans to become the largest satellite broadband provider in Europe by the end of 2017 with approximately 100,000 customers.