Globecomm Systems, a provider of communications offerings and services, has acquired ComSource, a provider of independent test and evaluation of a variety of telecommunications equipment and related recurring long term application support.
The initial purchase price is $20m, funded through $2m of existing cash and $18m through the Globecomm’s existing credit facility with Citibank.
ComSource may receive up to $21m of additional consideration, through a two-year earn-out, based on reaching certain earnings milestones.
ComSource client testing includes basic performance, data assurance, reliability and system security, said Globecomm.
In addition, ComSource is capable of testing the following wireless equipment types: UMTS (3G) platforms and mobile devices; GSM platforms including GPRS and EDGE and mobile devices; CDMA platforms and mobile devices; Wi-Fi platforms and mobile devices; and Wi-Max platforms and mobile devices.
ComSource currently employs 48 individuals, of which 39 are dedicated to wireless technologies software development.
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Globecomm Systems CEO David Hershberg said the company continues to invest in mobile technologies as the proliferation of mobile devices such as cell phones and tablets reach unprecedented levels and the company anticipates continued robust growth in this vertical marketplace.
"ComSource’s key customer affords Globecomm the opportunity to up-sell multiple aspects of Globecomm’s current engineering capabilities in the broadcast and multi-media arena, which are rapidly converging in the wireless arena," Hershberg said.
ComSource CEO Jerald Cruce said it’s a great opportunity for the employees and staff of both Globecomm and ComSource; the synergies of both companies will be a positive asset to grow their respective business base, and ensure the future outlook of employees and clients.
