O3b Networks, a UK-based satellite operator backed by Google, satellite operator SES and diversified holding company Sofina, closed $460m in incremental financing from undisclosed investors yesterday.
Founded in 2007, O3b operates a network of satellites that are used by telecommunication network operators, internet service providers, business and government customers. It has signed up 40 customers in total since it launched the service commercially in September 2014.
The funding will support the purchase of eight satellites from Thales Alenia Space, expanding O3b’s satellite network from 12 to 20 by mid-2018.
Steve Collar, chief executive of O3b Networks, said: “With our energy and government businesses set to grow during 2016, these additional satellites will ensure that we have enough capacity to service the demand and to provide the very best combination of performance and value in the market.
“Our ability to attract close to half a billion dollars of incremental investment so soon after commercial launch demonstrates tremendous confidence in O3b’s business and reflects the success that we have already achieved.”
O3b has been well funded from the start, having received $75m in funding from SES in November 2009, after raising approximately $74m in 2008 and early 2009 from investors including Allen & Company.
The company subsequently raised $1.2bn in 2010, $410m of which was equity, with the rest being provided in the form of two senior debt facilities and a mezzanine facility.
The equity came from Google, SES, Allen & Company, Sofina, telecoms and media company Liberty Global, North Bridge Venture Partners, Development Bank of Southern Africa, Satya Capital and HSBC Principal Investments, a subsidiary of financial services firm HSBC.
O3b raised another $89m from undisclosed investors prior to the latest funding, according to regulatory filings. It has now raised about $1.9bn in debt and equity altogether.