Livewire becomes Marlink but with satellite costs at an all time low are current distribution models sustainable?

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Livewire

Do mergers and acquisitions mean less margin for everyone?

Or is this simply the superyacht sector joining the realities of consumer-driven markets?

Well, that depends.

I have no doubt it’s a buyers market but I also believe this is a pivotal moment for the relationship between titans such as Marlink and integrators such as AV companies.

It’s important to consider preserving the supply chain and not undercutting integrators simply to gain market share. No doubt the added value and customer support and spares availability will be important factors in selling a valued added service as opposed to selling purely on price.

But with some companies giving huge discounts and/or undercutting distributors and selling direct to yachts, what does this mean for the market as a whole?

In the commercial sector prices have dropped up to 40% in the last 10 years with fierce competition between manufacturers. But when you are making deals for 2000 vessels you can afford low margins this might not be the case for our market.

So can the superyacht market survive VSAT price war? Yes, but we need to stop and think and make sure we don’t lose our integrity and friends along the way.

At what point will integrators stop selling satellite systems and simply become installers or simply refuse to supply. This would drive operational costs for companies like Marlink sky high and we all know a good business model is a strong supply chain and sky-high operational costs with low-profit margins is simply bad business.

Interesting times indeed. We look forward to hearing Marlink’s market approach and how they plan to support a sustainable distribution network.

What could happen next?  MTN/Priva getting bought by Speedcast. Who knows…

 

Press release from Livewire

As you may be aware, Livewire Connections was purchased by Marlink at the end of 2017 as part of a strategic focus on the superyacht segment.

With Marlink we have an experienced and well-prepared new owner with a strong ambition to bring our business to the next level and to continue supporting you, our customers, with an innovative service portfolio and comprehensive network. Starting today, we will rebrand Livewire Connections to Marlink Ltd. Under the new Marlink identity, we will further strengthen our portfolio with the ability to offer services from our other group company OmniAccess to yachting customers going forward.

The rebranding will have minimal impact on our relationship with you, except for the change of logo and company name. As a valued customer, we will continue to pioneer highly reliable, flexible and future-proof Communications, IT and Service solutions for you. Similarly there will be no change on the operational side with Sales, Engineering and Accounts teams remain unchanged.

To ensure all bank payments are received without issue, the Account Name must be changed to Marlink Ltd. This will be clearly marked on all future invoices but will also need to be changed if you are paying older invoices as these will say Livewire Connections Ltd which is now incorrect. To confirm, all other account details will remain the same.

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