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. "
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts