30 April 2018
| Natalie Bannerman
Globalstar, the telecoms satellite provider, will merge with FiberLight, the metro fibre provider, in a deal worth $1.65 billion.
Under the terms of the agreement 15.5 million shares of
common stock in CenturyLink, $100 million in cash and minority
investments in complementary businesses and assets of $25
million in exchange for Globalstar common stock valued at
roughly $1.65 billion.
The deal will be signed with Thermo Acquisition, the holding
company of Globalstar. Thermo Acquisition is controlled by Jay
Monroe, executive chairman of the board of directors and chief
executive officer of the company. Completion is due to take
place by Q3 of 2018 at which point the parent company will be
renamed as Thermo Companies.
Commenting on the merger Monroe, 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, fibre infrastructure and other related
The newly formed company will hold a number of unique assets
including Globalstar’s satellite business which
has a 2017 adjusted EBITDA of roughly $32 million; a spectrum
management company; FiberLight which has approximately 14,000
route miles of fibre and an adjusted EBITDA of $67 million; and
Thermo Investments which has investments in CenturyLink,
Pivotal Commware and Orion Labs, as well as $100 million of
The new company will form with four principle
operating subsidiaries under the Thermo Companies umbrella:
Globalstar, FiberLight, Global SpectrumCo and Thermo
The two parties say that the merger will create "a
fundamentally stronger company with significantly reduced
leverage and diversified holdings."
Monroe is set to increase his ownership share of the new
company, moving from 58% as it is currently to approximately
83% and 87% at the time of closing.