Globecomm sold to private equity firm for $340M

The sale of Globecomm of Hauppauge was announced The sale of Globecomm of Hauppauge was announced Monday, Aug. 26, 2013. "We believe that this transaction is in the best interest of our shareholders, customers, partners and employees," Globecomm chairman and chief executive David Hershberg said in a news release. Photo Credit: Joseph D. Sullivan, 2010

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Globecomm Systems Inc., a satellite communication device manufacturer, has agreed to be acquired by a Manhattan private equity firm for $340 million, marking the latest takeover in the dwindling sphere of Long Island public companies.

Wasserstein & Co. has agreed to pay $14.15 per share, a premium of 22 percent over the closing price on Jan. 14, when the Hauppauge company announced it had hired an adviser to explore a possible sale. The shares closed Friday at $14.40, and fell 3 percent Monday, to 13.96.

"We believe that this transaction is in the best interest of our shareholders, customers, partners and employees," Globecomm chairman and chief executive David Hershberg said in a release Monday.

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Globecomm is the latest in a string of Long Island public companies, including Arrow Electronics Inc., vitamin maker NBTY Inc. and Standard Microsystems Corp., that have either moved or been sold in the last decade.

Ten years ago, there were more than 80 public companies based in Nassau and Suffolk counties and traded on major exchanges. Today there are fewer than 55.

Globecomm, founded in 1994, is Long Island's 24th largest public company, with a stock-market value of roughly $330 million. It has roughly 500 employees, including 263 on Long Island.

The company derives about 20 percent of its revenue from the U.S. Army, and the sale comes as Long Island's once-booming defense and aerospace industry is waning. In March, Northrop Grumman Corp. announced it was moving 850 local jobs to Florida and California.

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It's unclear what the acquisition means for Globecomm's local workers. A Wasserstein spokesman didn't respond to a request for comment. The sale is scheduled to close by the end of December.

Globecomm has struggled in recent months with the across-the-board federal spending cuts known as the sequester. In May, the company said sales had fallen to $78.1 million during the quarter ended in March, down 30 percent from last year.

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Globecomm projects overall revenue will fall to $319.6 million this year, down 16 percent from 2012.

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