A commercial vessel equipped with KVH’s TracPhone V7. Photo: KVH

[Via Satellite 07-03-2014] KVH Industries has acquired Videotel, a company that specializes in training films and e-learning services for the commercial maritime industry. Videotel had annual combined revenues of approximately $22 million in 2013. Multi-year subscription-based services generated 93 percent of said revenues. The company’s combined gross profit margin for 2013 stood at roughly 73 percent.

“Videotel operates in a growing sector of the e-learning market where increasing levels of regulation and a shortage of trained and experienced seafarers drive the need for comprehensive training solutions. We anticipate that Videotel’s training services and the ability to test and certify seafarer training will support the new employment services we’re rolling out on our Crewtoo social media site,” said Martin Kits van Heyningen, CEO of KVH.

Videotel currently services more than 11,000 vessels. KVH financed the purchase using cash on hand as well as proceeds from a new credit facility, and expects the transaction to be accretive to earnings per share in 2014.