The Acquisition of Spire Global Maritime Business by Kpler Closes Amid Regulatory Scrutiny
The acquisition of the maritime business from Spire Global by Kpler has finally closed on the agreed date of April 25, following a settlement between the two companies. However, the deal was not without its challenges as the UK Competition and Markets Authority (CMA) has opened an investigation into the proposed business combination, leading to the companies being required to operate independently.
Kpler confirmed that it is cooperating with regulatory authorities, particularly the CMA, and has entered into a compliance statement promising to keep the business units separate. This includes not sharing technology or confidential business data and maintaining their current product offerings. Despite this setback, Kpler sees the acquisition as a strategic move to enhance its capabilities in maritime data and analytics.
Mark Cunningham, CEO of Kpler, expressed that the addition of high-quality data from Spire Global will provide valuable insights into global trade flows, helping customers make better decisions daily. Spire Global reported the completion of the sale for approximately $233.5 million plus a $7.5 million agreement for services post-close, using the proceeds to invest in growth opportunities.
Earlier this year, Spire Global filed a lawsuit against Kpler for failing to close the acquisition of its maritime group, citing potential debt problems if the deal did not go through. However, an agreement was reached to resolve the litigation, contingent on the closing by April 25. The CMA filing revealed that Kpler had sought consent for derogations to the Initial Enforcement Order, which was granted with conditions to maintain independence.
Spire Maritime, known for its real-time satellite capabilities, collects data from ships using nanosatellites in constant earth orbit. The acquisition of Spire Global’s technology is expected to enhance Kpler’s data reach, supporting informed decision-making in the global supply chain. Kpler had previously acquired MarineTraffic and FleetMon to expand its data portfolio.
Spire Global will retain its satellite network and focus on customers in aviation, weather, and space services sectors. The CMA continues to assess the potential impact of the business combination on competition in the UK markets. Overall, the acquisition represents a significant step for Kpler in strengthening its position in the maritime data and analytics industry.