This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Globecomm Sells Itself to Wasserstein for $340M

NEW YORK ( The Deal) -- Satellite communications and broadcasting service company Globecomm Systems (GCOM) will be acquired by an affiliate of private investment firm Wasserstein & Co. for $14.15 a share, or $340 million, the target announced Monday, Aug. 26.

The deal concludes a strategic review for the target active since the beginning of the year when Hauppauge, N.Y.-based Globecomm tapped Needham & Co. to advise it on strategic alternatives.

The target was facing pressure from activist investors, among them Chicago-based investment firm Discovery Group which had told the company last year it should explore a sale. Other investors more recently raised the possibility of a proxy fight.

The purchase price represents a 21.9% premium to Globecomm's share price on Jan. 14, the day the strategic review was announced. Globecomm closed at $14.40 per share Friday.

Globecomm's board unanimously approved the purchase and the deal should close in the fourth quarter of 2013.

One industry observer called the deal a good way for the private equity firm to gain a foothold in the cutting edge of the telecom world.

"[Globecomm's] got a really good position in the future of telecom," said Jimmy Schaeffler, head of telecom valuation and consulting firm Carmel Group Monday. "They've got good engineers, a good reputation, and good executive management."

Wasserstein will fund the purchase via cash and debt financing through Highbrige Principal Strategies LLC, which already has a commitment letter in place.

"Globecomm is a leader in developing and managing complex communications solutions with a strong track record of growth and innovative engineering that leverages its global communications network," commented Anup Bagaria, co-managing partner of Wasserstein. "Globecomm has also made successful investments in new product development that we believe will drive future growth in both the company's existing and new markets."

For the year ending June 30, 2012, Globecomm reported $381.9 million in sales, $28.5 million in net income, and $50.9 million in Ebitda, compared to $274.1 million in sales, $8.9 million, and $24.9 million in Ebitda. The takeout multiple was thus around 6.6 times Ebitda, the median for satellite communications companies
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GCOM $0.00 0.00%
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs