AUGUST 28, 2018 — Publicly traded Speedcast International Limited, Sydney, Australia, once again is shaking up the satellite communications industry, following its announcement today that it has entered into a definitive agreement to acquire Globecomm Systems Inc., Hauppauge, NY, for an estimated net purchase consideration of $135 million, including expected purchase price adjustments.
Speedcast acquired CapRock Communications in 2016 and acquired UltiSat in 2017.
Globecomm provides remote communications and multi-network infrastructure to Government, Maritime, and Enterprise sectors in over 100 countries. The acquisition strengthens Speedcast’s global competitive position in these sectors by enhancing its current solutions, and complements the recent acquisition of UltiSat – doubling Speedcast’s revenue in the Government sector, and adding more scale, visibility and capabilities in this growth market. In addition, Globecomm will benefit from Speedcast’s scale and capabilities in the Maritime and Enterprise markets.
“This acquisition of Globecomm is fully in line with our strategy to consolidate our industry and thus build competitive advantages based on scale and capabilities. Globecomm is particularly complementary to UltiSat as it strengthens Speedcast’s position serving Government customers at a time when government spending globally is expected to rise,” said Speedcast CEO Pierre-Jean Beylier. “I am excited to have the Globecomm team joining Speedcast. They will strengthen our innovation capabilities with new solutions and strong engineering experience, as well as enhancing our system integration propositions. We expect to drive significant cost and revenue synergy potential from this acquisition, given the strong financial and operational benefits of scale across core verticals.”
The transaction is expected to close in the fourth quarter of this year, subject to the completion of customary closing conditions, including regulatory approvals.