Globecomm headquarters in Long Island, NY. Photo: Globecomm

Speedcast International, a provider of remote communication and Information Technology (IT) solutions, entered into a definitive agreement to acquire Globecomm Systems from affiliates of HPS Investment Partners, Tennenbaum Capital Partners, and other members of Globecomm for an estimated net purchase consideration of $135 million, including expected purchase price adjustments.

Globecomm is a provider of remote communications and multi-network infrastructure to government, maritime, and enterprise sectors in over 100 countries. The acquisition enhances Speedcast’s 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, according to the release. In addition, Globecomm will benefit from Speedcast’s scale and capabilities in the maritime and Enterprise markets.

The acquisition will be funded by a fully underwritten $175 million add-on to Speedcast’s existing 7‐year senior secured credit facility (due 2025) from the U.S. institutional term loan market, which will also be used to repay a portion of Speedcast’s revolving credit facility and thus enhance Speedcast’s liquidity position. The transaction is expected to close in Fourth Quater (Q4) 2018, subject to the completion of customary closing conditions, including regulatory approvals.