Speedcast, which also recently bought the Gaithersburg, Maryland-based UltiSat, said the acquisition would strengthen its global competitive position. Globecomm, which provides remote communications and multinetwork infrastructure, has a number of government customers.
All told, the two recent acquisitions have doubled Speedcast’s revenue in the government sector, the company said.
“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,” said Speedcast CEO Pierre-Jean Beylier. “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. Globecomm has built a strong reputation providing remote communications and professional services to key customers in the government sector, as well as in the Maritime and Enterprise segments.”
Speedcast estimates the deal will generate more than $15 million in annual cost synergies within 18 months after the acquisition closes.
“The Globecomm team is thrilled to join forces with the global leader in remote communications,” said Jason D. Juranek, Globecomm CEO. “This is an exciting development for our employees and our customers and I look forward to building new solutions and further enhancing our customers’ experience with the integrated team,”
The acquisition is expected to be finalized in the fourth quarter of 2018.