Globalstar, FiberLight Merging in $1.65 Billion Deal
Satellite company Globalstar and fiber company FiberLight -- both headed by the same person -- will combine in a $1.65 billion Globalstar stock deal, Globalstar said Wednesday. Globalstar CEO and Chairman Jay Monroe -- also founder and controlling shareholder of…
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holding company Thermo Acquisitions, which includes FiberLight among its holdings -- said the deal combines "strategic assets that are critical" to next-generation networks. Thermo Cos. will be formed combining Globalstar with Thermo Acquisitions assets FiberLight, 15.5 million shares of CenturyLink common stock, $100 million in cash and minority investments and $25 million in other assets. Globalstar said the deal is expected to close in Q3 and has been OK'd by its board. It said Thermo Cos. revenue will come from sources including satellite and FiberLight operations and "leasing or other monetization" of spectrum. It said the combination will better enable it to monetize its 2.4 GHz of terrestrial spectrum and to take part in terrestrial deployments of its bands. Monroe would have 83 to 87 percent of the new company, up from 58 percent of Globalstar today. The deal requires approval by Globalstar and FiberLight lenders and by Globalstar shareholders, it said. FiberLight and Globalstar have FCC licenses, according to the commission. The agency didn't comment on a possible merger review. In an investor presentation filed with the SEC, Globalstar said a sister company under New Thermo, Global SpectrumCo., will focus on residential, industrial and enterprise offerings employing the S-band, and also look into 5G opportunities for its spectrum holdings in the L- and C-bands.