To execute on its long term plan of building end-to-end managed services company
Globecomm Systems, a provider of satellite-based communications infrastructure services, has acquired Carrier to Carrier Telecom (C2C) and the assets of Evolution Communication (Evocomm) from Carrier to Carrier Telecomm Holdings (C2C Holdings) for a price of $15m in cash.
The company said that the acquisition will be funded through $2.5m of cash position and about $12.5m through the company’s existing credit facility with Citibank. The additional payment of up to $10.9m may be made to C2C Holdings through a two-year earn-out, based on reaching certain earnings milestones.
The transaction is anticipated to be accretive to the company’s diluted earnings for its fiscal year ending June 30, 2010, including the impact of amortisation of intangibles relating to the transaction, and excluding the non-recurring charge for acquisition costs. Globecomm anticipates a non-recurring charge to earnings of around $0.03-$0.04 per share in the company’s third quarter earnings ending March 31, 2010 relating to acquisition costs.
David Hershberg, chairman and CEO of Globecomm, said: “With this acquisition, Globecomm continues to execute on its long term plan of building the industry’s finest end-to-end managed services company. The natural cultural fit of the engineering talent of C2C, Evocomm and Evosat, coupled with a robust teleport in Biddinghuizen, Netherlands were the primary factors in our decision to move forward with this transaction.”