Globecomm Acquires ComSource for Up to $40 Million Depending on Earn-Outs

Globecomm Systems (GCOM) announced today that the Company has acquired ComSource, a company based in Frederick, MD that provides independent test and evaluation of a variety of telecommunications equipment and related recurring long term application support.

According to Globecomm, the initial purchase price is $20 million, funded through $2 million of existing cash and $18 million through the company's existing credit facility. Additionally, ComSource may receive up to $21 million of additional consideration, through a two-year earn-out, based on reaching certain earnings milestones.

The transaction is expected to be immediately accretive, excluding the impact of amortization of intangibles relating to the transaction and excluding the non-recurring charge for acquisition costs.

Shares are down 0.46% to $12.94.

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