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Speecast Announces Acquisition of Globecomm

Speedcast has entered into a definitive agreement to acquire Globecomm Systems Inc. ("Globecomm") from affiliates of HPS Investment Partners, LLC and Tennenbaum Capital Partners, LLC for an estimated net purchase consideration of US$135 million(see Note below), on a cash & debt free basis.

The acquisition, which is expected to close in Q4 2018, strengthens Speedcast's global position in Government, Maritime and Enterprise and it strongly complements last year's acquisition of UltiSat. This will double Speedcast's revenue in Government, and add more scale, visibility and capabilities in this strategic growth market

Speedcast estimates it will generate over US$15 million in annual cost synergies within 18 months after the acquisition

The acquisition will be funded by a fully underwritten US$175 million add-on to Speedcast's existing 7-year senior secured credit facility (due 2025) from the US institutional term loan market. This will also be used to repay a portion of Speedcast's Revolving Credit Facility and enhance Speedcast's liquidity and cash reserves

"The acquisition of Globecomm is fully in line with our strategy to consolidate our market and thus build competitive advantages based on scale and capabilities. 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. I am excited to have the Globecomm team joining Speedcast. They will strengthen our innovation capabilities with new solutions and strong engineering experience, as well as enhancing our system integration propositions." said Pierre-Jean Beylier, Chief Executive Officer of Speedcast

Note: The purchase price of US$135M is net of the total proceeds from the sale and leaseback of Globecomm's Hauppauge facility of ~US$20M, 50% of which will be payable to the Vendors and the remaining 50% to be re! tained by Speedcast, and other estimated purchase price adjustments.

For further information please contact kfrench