Private equity firm Wasserstein & Co has received shareholder approval to buy US satellite communications services provider Globecomm Systems for around US$340m.
Approximately 89% of the nearly 20 million votes cast at Friday’s special meeting,…
Private equity firm Wasserstein & Co has received shareholder approval to buy US satellite communications services provider Globecomm Systems for around US$340m.
Approximately 89% of the nearly 20 million votes cast at Friday’s special meeting, representing roughly fourth-fifths of voting shares, were in favour of the US$14.15 per share deal.
The company expects to close the deal in December, subject to regulatory approval.
The offer is a 21.9% premium over its closing price on 14 January 2013, the day the Nasdaq-listed group announced it had hired Needham & Co for a strategic review. It is also a valuation multiple of 8.85x Globecomm’s US$38.4m in fiscal 2013 adjusted EBITDA.
However, some analysts had argued the offer was substantially below estimates, with many setting a target price of over US$15.5 per share. Others raised it as high as US$18.
Shares fell to US$13.96 on 26 August, the day the definitive takeover agreement was announced, from a close of US$14.40 on 23 August. They have gradually increased since then to around US$14.11 as SatelliteFinance went to press.
Needham is Globecomm’s exclusive financial adviser and the company hired Kramer Levin Naftalis & Frankel for legal advice. Jones Day is providing legal advice to Wasserstein, while US Space is advising it on industry matters.
Globecomm recently posted Q1 2014 sales of US$57.2m, down 29.4% compared with the corresponding period last year.
Revenues from services fell 4.8% to US$44.9m primarily because of military withdrawals from Afghanistan. The company also posted a 63.7% fall in revenues from infrastructure solutions to US$12.3m, blaming the timing of bookings and lower than traditional margins from a key government programme.
Adjusted EBITDA for the three months to 30 September 2013 fell 30.8% to US$5.5m, compared with US$8m for the period last year.
