An investor group led by HPS Investment Partners LLC and Tennenbaum Capital Partners LLC have agreed to buy Globecomm Systems Inc. Financial terms weren’t announced. Globecomm, of Hauppauge, New York, is a satellite communications company. Wasserstein & Co acquired Globecomm in 2013 for $340 million.
HAUPPAUGE, NY–(Marketwired – Aug 9, 2017) – Globecomm Systems Inc. (“Globecomm” or “the Company”), a leading service provider in designing, integrating, and operating complex communication solutions differentiated by capabilities in satellite and wireless, announced today that an investor group led by HPS Investment Partners, LLC (“HPS”) and funds managed by Tennenbaum Capital Partners, LLC (“TCP”), have entered into a definitive agreement to acquire Globecomm from a New York-based private equity firm. Terms of the transaction were not disclosed.
With nearly 400 employees and 200 engineers spanning 17 offices and 10 countries, Globecomm leverages unique innovations, world-class engineering, and global network connectivity to link anyone to anything, wherever in the world their customers’ needs dictate, no matter how remote, hazardous or challenging. Globecomm is dedicated to improving communications and leverages its world class, global teleport and fiber network and data centers to offer end-to-end, managed service communication solutions worldwide, all supported by a 24/7 Network Operations Center.
“This transaction positions Globecomm’s business for the future and accelerates our company’s evolution to provide complex communication solutions to the connected world,” said Jason D. Juranek, Chief Executive Officer, of Globecomm. “I am excited about our strong and growing pipeline of opportunities within our core markets, as well as investments we are making in adjacent verticals, to further expand our diversification strategy. In the more than three years that we have partnered with HPS and TCP we’ve successfully delivered against our customer-focused strategy. With this transition, we have taken significant steps to recapitalize and strategically position Globecomm for long-term success. Their collective experience and extensive expertise collaborating with management teams and companies in our industry will further enhance our ability to grow our business and provide our customers with state-of-the art services and solutions. We are eager to work with our new owners that continue to share our passion in the industry in which we operate and are supportive of our long-term future.”
The transaction is expected to be completed in the third calendar quarter of 2017, and is subject to customary regulatory approvals.
About HPS Investment Partners
HPS Investment Partners, LLC (“HPS”) is a leading global investment firm established in 2007. HPS has approximately 100 investment professionals and over 200 total employees, and is headquartered in New York with ten additional offices globally. HPS was originally formed as a unit of Highbridge Capital Management, LLC, a subsidiary of J.P. Morgan Asset Management, and formerly known as Highbridge Principal Strategies, LLC. In March 2016, the principals of HPS acquired the firm from J.P. Morgan, which retained Highbridge’s hedge fund strategies. As of June 2017, HPS had approximately $40 billion of assets under management.
About Tennenbaum Capital Partners, LLC
Tennenbaum Capital Partners, LLC (“TCP”) is an alternative investment management firm focused on direct lending for middle-market companies. TCP manages funds and accounts on behalf of global institutional investors. Since its founding, TCP has invested more than $18.5 billion in over 500 companies. TCP is headquartered in Los Angeles with additional offices in New York and San Francisco. For more information, please visit: www.tennenbaumcapital.com and www.tcpcapital.com.
About Globecomm Systems Inc.
Since 1994 Globecomm has provided robust connectivity for Land, Sea and Air transport of video, voice, and data with zero downtime to the most remote locations on Earth — and under the most treacherous conditions. Globecomm’s comprehensive Satellite, Fiber, Cellular, and CDN infrastructure and services are entrusted to provide the smartest solutions for mission-critical RF and IP communications to Government, Maritime, Media, Enterprise, Wireless Mobile and IoT customers in over 100 countries. Along with its award-winning engineering expertise, the company also specializes in system design and integration; end-to-end hosted and managed services; and media infrastructure, video cloud platform, and IPTV services.
Headquartered in Hauppauge, NY, Globecomm has locations in Maryland, New Jersey, Virginia, the Netherlands, South Africa, Germany, Singapore, the United Arab Emirates and Afghanistan. www.globecomm.com