New York-based corporate advisory firm Greenhill has agreed to invest USD22.9m in Iridium Holdings, a US provider of voice and data mobile satellite services, while its affiliate GHL Acqui
New York-based corporate advisory firm Greenhill has agreed to invest USD22.9m in Iridium Holdings, a US provider of voice and data mobile satellite services, while its affiliate GHL Acquisition Corporation has agreed subsequently to acquire Iridium in a transaction placing an enterprise value on the satellite services operator of some USD591m.
The USD22.9m investment is expected to close in the fourth quarter, ahead of the acquisition of Iridium by GHL Acquisition. The latter transaction is subject to Federal Communications Commission approval, expiration of a statutory waiting period and approval by the purchaser’s shareholders, and is expected to occur early next year.
If the acquisition of Iridium takes place on the agreed terms, Greenhill will own around 6.9 million shares of the combined company and six million warrants, in addition to the Iridium securities it will receive as a result of its USD22.9m investment.
‘Iridium is the fastest-growing full service voice and data mobile satellite services provider and only one of a handful of players in its industry,’ says Greenhill co-chief executive Scott L. Bok.
‘It has developed substantial scale in terms of revenue and cash flow. We believe Iridium is a very attractive investment opportunity and look forward to supporting its management team as it continues to create value for customers, deliver profitable growth and realise the company’s full potential.’
