Globecomm Systems Inc. is a satellite communications provider. The company said that it had agreed to be taken private by investment company Wasserstein & Co. The deal was priced USD340 million.
The offered price of USD14.15 a share in cash represented a discount of 1.73% to the closing price of Globecomm last Friday. The company's shares slumped by 3% to USD13.95 on the Nasdaq last Monday morning. The shares also traded well below the offered deal price. Last Friday, Globecomm's stock had increased by 24% since January. During the same month, the company had announced that it would be open to exploring strategic alternatives.
In a statement, Globecomm announced that the deal would be financed through cash. The funding would come from Wasserstein affiliates. It would also come from the company's co-investors as well as debt financing.
Wasserstein was established in 2001 and had made deals valued USD3 billion. The company also manages New York magazine.
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