Globalstar announced on 25 April, that it had signed a merger agreement with Thermo Acquisitions Inc., a private investment company controlled by Globalstar CEO James Monroe III. Included in the agreement is the transfer of ownership of FiberLight LLC – owner of a large fibre optic network covering Texas, the Bay area of Florida and Washington DC, from Thermo to Globalstar, as well as US$100m cash and additional shares in several other companies.
The deal is expected to complete in Q3 2018, and at completion Globalstar will become “Thermo Companies Inc.”. This single company will own an extensive set of assets from the Globalstar global satellite network, a spectrum management company to further the terrestrial use of S-band, FiberLight’s high-density fibre optic network and Thermo Investments investment portfolio. Following the merger’s completion James Monroe will hold majority ownership of the new entity, predicted to be between 83 – 87 per cent, of the company – an increase from the 58 per cent ownership of Globalstar enjoyed currently. This figure is dependant on several factors, including the Globalstar 20-day volume weighted average share price upon closure of the deal.