World Surveillance Group Inc., a developer of lighter-than-air unmanned aerial vehicles (UAVs) and related technologies, has completed its 100% acquisition of Global Telesat Corp. (GTC), a privately held company providing satellite airtime and tracking services to the U.S. government and defense industry end users.
The $600,000 deal was made in cash (payable in installments), 30 million shares of common stock of WSGI, and an earn-out equal to 5 percent of any gross revenues associated with GTC’s construction contracts of up to five satellite ground stations.
GTC was formed in 2003, grossing more than $27 million in revenue since its inception. WSGI said it expects the acquisition and integration of GTC’s products to speed up its expansion efforts and goal of securing a solid foothold in the global surveillance and communications market.
“The acquisition of GTC is another significant step in the overall strategic plan we continue to implement as we advance WSGI’s operations and business. In addition to executing on the integration of the combined entity, we will continue to review opportunities that can provide strategic value for our company,” WSGI Chairman Michael K. Clark stated in the press release. “We are excited by the prospect of expanding the combined company’s business on a global scale.”
WSGI noted that the acquisition also equips it with a profitable business unit; established government customer relationships and access; a long-term relationship with leading satellite network operator Globalstar Inc.; and the opportunity to expand GTC’s product strategy in the expanding commercial markets.
“The acquisition of GTC creates both a diversified and expanded product strategy for the combined company, with a history of revenue and positive cash flow, and product integration possibilities as we continue to advance our UAV business,” WSGI president and CEO Glenn Estrella stated. “The combined operating entity intends on focusing on growing revenues in our commercial and Government customer bases by leveraging our strong partnership and customer relationships.”
Operating as a wholly owned subsidiary of WSGI, GTC is expected to be immediately accretive to WSGI’s financial results.
For more information visit www.gtc-usa.com or www.wsgi.com