Private Equity Firm To Buy Globecomm Systems

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Satellite and communications solutions provider Globecomm Systems is being acquired by an affiliate of private equity firm Wasserstein & Co. in a transaction valued at approximately $340 million, Hauppauge, N.Y.-based Globecomm announced Aug. 26.

The purchase price translates to $14.15 per share in cash, which Globecomm said represents a 21.9 percent premium over its closing share price on Jan. 14, the day it announced it had retained investment banker Needham and Co. to explore strategic options. At the time, Globecomm also said it had lowered its revenue and earnings expectations for the fiscal year ending June 30. 

The deal, which was unanimously approved by Globecomm’s board of directors, still must pass muster with the company’s shareholders and U.S. government regulators. Globecomm said it expects the transaction to close during the fourth quarter of the current calendar year.

“We believe that this transaction is in the best interest of our shareholders, customers, partners and employees,” Globecomm Chairman and Chief Executive David Hershberg said in a prepared statement. “Wasserstein & Co. has a proven track record of helping companies build on their success.” 

In its Jan. 14 press release, Globecomm said it was lowering its revenue expectations for the year ending June 30 from $340 million-$360 million to $320 million-$340 million. Actual revenue for the year came in at $319.6 million, the company said Aug. 26. Earnings before interest, taxes, depreciation and amortization came in at $38.4 million, compared with the company’s revised Jan. 14 estimate of $40 million-$42 million.