As the sun set on 1999, the purchase of 40 percent ownership in the satellite communications company NSSLGlobal was made official. Current NSSLGlobal and Arendals Fossekompani Board Member, Arild Nysæther, was an active participant of the official occasion.
“It started earlier on that same year. We were made aware of NSSLGlobal through Erik Must, Chairman of Arendals Fossekompani at the time. His company, Fondsfinans, was tasked with finding a new investor for NSSLGlobal,” says Nysæther.
Established in 1969, NSSLGlobal quickly received its first big contract order from the Cunard Steam Ship Company to provide eight tankers and three passenger vessels with marine radio and telecommunications equipment. Under Arendals Fossekompani’s wing, the company has become a leading provider in satellite communications, systems integration, engineering and IT solutions across the maritime, enterprise, defence and government sectors.
NSSLGlobal’s ongoing commitment to innovation and helping customers solve their communication challenges wherever they are in the world has earned the company prestigious clients, including the UK Ministry of Defence, the German Armed Forces and other NATO organisations to some of the largest commercial maritime companies such as Mitsui O.S.K. Lines (MOL) and Teekay.
A change in plan
At the turn of the century, Fondsfinans had found an attractive buyer in Norwegian telecom giant, Telenor. The company was interested; however, a change was made in the orginal plan to find a new owner.
“Both Must and I had established a tight bond with NSSLGlobal management and became fascinated with the companies’ possibilities throughout our yearlong inquiry,” says Nysæther.
In the end, it was decided that Arendals Fossekompani and Telenor would split ownership, each taking forty percent at the time and leaving the original owner with twenty percent. Both Arendals Fossekompani and Telenor established a productive co-owner relationship in the years that followed. In 2010, Arendals Fossekompani acquired Telenor’s ownership a few years after the company sold it to the private equity firm, Apax.
The launch of a satellite network
When asked about a particular instance where Arendals Fossekompani assisted NSSLGlobal with value creation, Nysæther – who has been an NSSLGlobal Board Member since that monumental New Year’s Eve – shares the story of a move that was made in 2009 that transformed the growth and trajectory of NSSLGlobal.
For context, back in the 1960’s, satellite communication was predominantly developed and operated by government or intergovernmental organizations. It wasn’t until the 1990’s that the full privatization of major satellite organizations began. This was mainly due to market demand, advancements in technology and policy changes.
“With strategic support and financial assistance from Arendals Fossekompani, NSSLGlobal was able to establish its own satellite network. The company was no longer just a reseller with a small margin but became a major player in the industry with an extensive and unique offering,” says Nysæther.
Active ownership
The big, redefining business decisions like the establishment of a satellite network are usually what makes a splash on front-page headlines. Though companies – Mom-and-pop stores to global corporations – show sustainable growth and heavily benefit from stable leadership and having freedom to operate as they see fit.
“Arendals Fossekompani tries to support NSSLGlobal when we have local or special knowledge to contribute, like pointing out potential new customers and interesting M&A cases,” says Torkil Mogstad, EVP at Arendals Fossekompani and NSSLGlobal Board Member (since 2017).
“NSSLGlobal management were invited to invest in the company, and with financing from AFK, and has had the same leadership team for the past ten years. This stability is a result of how Arendals Fossekompani modelled the ownership of the company,” says Nysæther.
Reinvesting for the future
Digitalisation and connectivity continue to drive growth for many of our portfolio companies. In 2024, NSSLGlobal’s bid pipeline, sales and profitability remained strong throughout the year and the company landed significant new business across both the government and maritime sectors.
NSSLGlobal maintains the status of a mature company within our portfolio and has a solid reputation of generating revenue. As investors, we have had the opportunity to utilize the profits from our mature companies, like NSSLGlobal, to invest in new technology and develop the businesses of the future.
Looking forward
With every investment, we have a long-term view of our objectives. And as a part of Arendals Fossekompani’s strategy, we retain ownership of portfolio companies for as long as we remain the best owner, ensuring long-term value and stability.
So, the question is continually asked. Are we still the best owner for NSSLGlobal after 25 years?
“We know how other companies are managed – everything from the constraints of private equity to the focus that gets lost under the control of a mega corporation. Over the years, we have had discussions with the Arendals Fossekompani board, conducted evaluations, and our convinced our ownership model is what works best for NSSLGlobal,” explains Nysæther.
“Arendals Fossekompani has a qualified competence in the satellite communications industry and together with their management team, we look forward to our on-going partnership and future strategy development,” says Mogstad.
You can learn more about our portfolio company, NSSLGlobal, here.