KVH Industries Sells Rhode Island Properties

KVH Industries, Inc. has entered into purchase and sale agreements for its Rhode Island office and factory. In addition, KVH announced that its board of directors has authorized a share repurchase program with an aggregate purchase price of up to $10 million.

On December 5, KVH entered into a purchase and sale agreement with Knight Capital LLC, under which the company agreed to sell its property located at 75 Enterprise Center, Middletown, Rhode Island, to Knight Capital for a purchase price of $8.5 million. The purchase includes related buildings, improvements and other assets. Consummation of the transaction is subject to customary closing conditions and specified zoning approvals. Upon consummation of the sale, KVH will remain in possession of the property as a tenant under a triple-net lease having an initial term of six months, which the company can extend for up to an additional three months as it completes its manufacturing wind-down and identifies a new headquarters facility.

In addition, on December 9, KVH entered into a purchase and sale agreement with 50 Enterprise LLC, a subsidiary of Seacorp, Inc., under which the company agreed to sell its property located at 50 Enterprise Center, Middletown, Rhode Island, to the purchaser for a purchase price of $4.5 million. The purchase includes related buildings, improvements and other assets. Consummation of the transaction is subject to customary closing conditions.

On December 9, the company’s board of directors also authorized a share repurchase program under which the company may purchase outstanding shares of KVH common stock for an aggregate purchase price of up to $10 million. Under the program, the company, at management’s discretion, may repurchase shares through various means, including on the open market, in privately negotiated transactions or block transactions, or through an accelerated repurchase agreement.