Satellite communication services provider Globecomm Systems has announced that Needham & Company is advising it on potential strategic alternatives.
The announcement comes just over two months after the company revealed it had received requests from…
Satellite communication services provider Globecomm Systems has announced that Needham & Company is advising it on potential strategic alternatives.
The announcement comes just over two months after the company revealed it had received requests from several shareholders to be put up for sale.
In the statement on 14 January 2013, Globecomm insisted there could be no assurances that Needham’s review would result in a transaction or any change to its business model.
The services provider also announced plans to present at Needham’s 14th annual conference on 15 January in New York, where it intends to meet investors throughout the day.
Globecomm was unable to comment before the press deadline.
CEO David Hershberg previously told SatelliteFinance in 2011 that his group had received unsolicited takeover offers from “a couple of people”. It had been speculated that JP Morgan had been hired to look into a potential deal. However, at the time, Hershberg said there was no active intention to sell the company, and that it instead planned to expand in existing verticals.
NSB Advisors is the group’s leading shareholder with a 19% stake, followed by Wellington Management Company, Discovery Group I and Dimensional Fund Advisors.
Globecomm has also recently lowered its financial results expectations for the year to 30 June 2013. It now expects revenues to be between US$320m and $340m, compared with between $340m and $360m previously. It said adjusted EBITDA is now expected to be between US$40m and $42m, compared with between US$40m and US$44m before.
The company expects to release its results for the fiscal 2013 second quarter and the six months ended 31 December 2012 on 6 February 2013.
