UK-based satellite communications solution provider, Inmarsat is set to acquire assets of VoIP solution and services provider, Segovia. Segovia also offers satellite and terrestrial solution and services including to the US army.

Inmarsat will initially pay $110 million with any additional amount to be paid depending upon future performance over the next three years. The deal is expected to close by 2010.

RBC Daniels and LP are acting as financial advisors to Inmarsat while Lazard is serving for Segovia.

Last year Segovia achieved revenues of $67 million and net profit of $ 18 million.

Andrew Sukawaty, Inmarsat's chairman and chief executive, said, "Segovia is ideally positioned to support the US Department of Defence's requirements to deploy secure networks rapidly using combinations of satellite and terrestrial facilities where they are required."

The deal will result in increased business from the US army to Inmarsat.