UAV Manufacturer Sanswire to Acquire Satellite Tracking Firm Global Telesat

[Satellite TODAY Insider 04-13-11] Sanswire Corp., a developer of lighter-than-air unmanned aerial vehicles (UAVs), agreed to acquire the outstanding shares of stock of Global Telesat Corp., a privately held U.S. based satellite tracking firm, Sanswire announced April 12.
    Global Telesat provides satellite-based asset tracking hardware, airtime and related equipment to the U.S. Department of Defense. Global Telesat’s satellite tracking hardware and processing equipment are collocated around the globe at ground station facilities owned and operated by Globalstar Inc. and its independent gateway partners, allowing Globalstar to use the assets to offer commercial tracking services to many of its subscribers. Global Telesat also operates its own satellite ground station facility and has in the past been awarded contracts to construct non-commercial satellite ground stations for Defense Department prime contractors.
    Sanswire hopes to leverage Global Telesat’s relationship with the Department of Defense "to secure contracts for our Argus UAV line of airships," Sanswire CEO Glenn Estrella said in a statement. Global Telesat and Sanswire "also share working relationships with key technical partners and systems integrators which should allow for a streamlined design and commercialization process resulting in high-quality, integrated products and a swift time to market. We believe the synergies generated by a combined entity are very exciting and would contribute positively to our financial results for 2011. The integration of our and [Global Telesat’s] technology into a complete, turnkey solution should provide an attractive option for government and commercial customers seeking ISR, tracking and monitoring, and communications solutions."
    Under the acquisition agreement, Sanswire will play $500,000 in cash, 30 million shares of Sanswire common stock and an earn-out equal to 5 percent of the gross revenues related to certain satellite ground station construction rights held by Global Telesat. The company will become a wholly owned subsidiary of Sanswire, and the companies hope to close the deal before the end of the second quarter.
    Global Telesat has grossed more than $27 million in revenues since 2003 and has had a positive cash flow and net profit every year. Additionally, the company has received a financing commitment for up to $1.5 million from Space Florida, which was created to foster the growth of the space industry in Florida.
    "The acquisition of [Global Teleport] not only would provide Sanswire with revenue and cash flow streams but would allow the combined entity to pursue new opportunities for product diversification and expansion," Sanswire Chairman Michael Clark said in a statement. "Moreover, the integration of [Global Teleports] products with [Sanswire’s] UAVs could provide aerial ground station capabilities in remote areas or areas with unreliable coverage or could act as an aerial satellite replacement capable of providing an entire telecommunications platform in areas struck by natural disasters or countries lacking infrastructure. The [Global Teleport] acquisition is intended to transform [Sanwire] into a provider of unique turn-key solutions encompassing ground, air and space-based communications."

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UAV Manufacturer Sanswire to Acquire Satellite Tracking Firm Global Telesat

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