Globalstar to merge with metro fiber provider FiberLight
(25 April 2018 - Globalstar) Globalstar today announced it has signed a merger agreement with Thermo Acquisitions.
The following assets will be combined with Globalstar: metro fiber provider FiberLight, 15.5 million shares of common stock of CenturyLink, $100 million of cash and minority investments in complementary businesses and assets of $25 million in exchange for Globalstar common stock valued at approximately $1.65 billion, subject to adjustments.
Thermo Acquisition is controlled by Jay Monroe, Executive Chairman of the Board of Directors and Chief Executive Officer of Globalstar. At closing the parent company will be renamed Thermo Companies and its stock will continue to trade publicly.
The merger is expected to close in the third quarter of 2018.
Jay Monroe, Executive Chairman of the Board of Directors and Chief Executive Officer of Globalstar and founder and controlling shareholder of Thermo Capital Partners and its affiliates (Thermo), said: “This transaction brings together strategic assets that are critical to the complex needs of next-generation networks, allowing service providers to deliver the sophisticated services their customers increasingly expect. The combined entity is uniquely positioned to meet a broad range of customer requirements, from low latency and high capacity networks, to consistent connectivity across large geographical areas. Long-term shareholders should benefit significantly from the combined entity’s strong balance sheet and recurring revenue from the portfolio of satellites, spectrum, fiber infrastructure and other related assets.”
Thermo was founded in 1984 to develop power plants and natural gas assets. The cash flow generated from these early energy assets was deployed across several industries with uncorrelated financial drivers including real estate, aircraft leasing, industrials, financial services and telecom. Over the past 30 years, a variety of investment strategies have been utilized across capital structures, ranging from internally developed start-up businesses to late-stage investments. Thermo’s partners are deeply involved in day-to-day management for primary holdings and have proven start-up, turnaround and late-stage growth experience across industries. Thermo typically seeks investments in industries undergoing periods of transition that may require a longer investment horizon than is acceptable to other investors.
Globalstar is a leading provider of mobile satellite voice and data services. Customers around the world in industries such as government, emergency management, marine, logging, oil & gas and outdoor recreation rely on Globalstar to conduct business smarter and faster, maintain peace of mind and access emergency personnel. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring, M2M and IoT applications. The Company's products include mobile and fixed satellite telephones, the innovative Sat-Fi satellite hotspot, Simplex and Duplex satellite data modems, tracking devices and flexible service packages.
FiberLight provides mission critical high bandwidth networks customized for clients’ specific requirements. FiberLight owns and operates deep fiber networks in over 30 metropolitan areas in the U.S. with a concentration in Texas, the Southeast, the Washington DC corridor, Mid-Atlantic markets and Bay Area. The growing network currently consists of approximately 14,000 route miles and 26,000 backbone access points. Customers include domestic and international telecom companies, wireless, wireline, cable and cloud providers as well as key players across enterprise, government and education representing 40 of the top 50 bandwidth providers in the United States