Sanswire Corp. (SNSR) Inks Letter of Intent to Acquire GTC and Leverage Key Partnerships
Sanswire Corp., a developer of lighter-than-air unmanned aerial vehicles (UAVs) and related technologies, today announced its intent to acquire Global Telesat Corp. (GTC), a privately held U.S.-based satellite tracking firm focused on providing customized tracking solutions and ground station construction services to the U.S. Department of Defense (DoD) and its prime contractors.
Since its inception in 2003, GTC has grossed more than $27 million in revenues and has had a positive cash flow and net profit every year. GTC is looking to capitalize on increasing world-wide commercial demand for satellite based tracking products and services; upon completion of the proposed acquisition, this will be GTC’s major focus.
“The acquisition of GTC not only would provide Sanswire with revenue and cash flow streams, but would allow the combined entity to pursue new opportunities for product diversification and expansion. Moreover, the integration of GTC’s products with the company’s UAVs could provide aerial ground station capabilities in remote areas or areas with unreliable coverage or could act as an aerial satellite replacement capable of providing an entire telecommunications platform in areas struck by natural disasters or countries lacking infrastructure,” Sanswire Chairman Michael K. Clark stated in the press release. “The GTC acquisition is intended to transform the company into a provider of unique turn-key solutions encompassing ground, air and space based communications for customers requiring cost effective, innovative technology solutions.”
Per the agreement, Sanswire will acquire GTC as a wholly owned subsidiary for $500,000 in cash, 30 million shares of the Sanswire common stock, and an earn-out equal to 5 percent of the gross revenues related to certain satellite ground station construction rights held by GTC.
Sanswire CEO Glenn Estrella noted that GTC is currently working with the U.S. DoD and that Sanswire anticipates leveraging this relationship to secure contracts for the company’s Argus UAV line of airships.
“GTC and the company also share working relationships with key technical partners and systems integrators which should allow for a streamlined design and commercialization process resulting in high quality integrated products and a swift time to market,” Estrella stated. “We believe the synergies generated by a combined entity are very exciting and would contribute positively to our financial results for 2011. The integration of our and GTC’s technology into a complete, turn-key solution should provide an attractive option for government and commercial customers seeking ISR, tracking and monitoring, and communications solutions.”
Sanswire has received a financing commitment for up to $1.5 million from Space Florida, an independent special district of the State of Florida, which was created boost growth of the space industry in Florida.
For more information visit gtc-usa.com or sanswire.com
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