Hauppauge, N.Y.-based Globecomm Systems (NASDAQ:GCOM) is getting bought out.
On Monday, the "communications solutions provider" announced that private equity firm Wasserstein & Co. has agreed to buy it for $14.15 per share, cash. Globecomm notes that the purchase price is approximately 21.9% above what its shares fetched on Jan. 14, the day when Globecomm first announced that it was reviewing "potential strategic alternatives" -- Wall Street code for "seeking a buyer."
Unfortunately, $14.15 is less than the shares cost at close of trading Friday. Accordingly, Globecomm shares dropped 3% in Monday trading, selling for less than $14 per share.
Last month, Globecomm was named as one of three companies given the right to bid on a $45 million firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity defense contract to supply the Defense Media Activity department at Fort Meade, Md., with Cisco satellite decoders and HD encryption systems.
Alongside today's buyout news, Globecomm informed investors this morning of its preliminary financial results for the fiscal year that ended June 30: Sales are expected to approximate $320 million, and GAAP earnings per diluted share should be approximately $0.66.
Based on these approximations, Wasserstein appears to be paying about 1.1 times sales and 21.4 times earnings for Globecomm's shares.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.