CMG Holdings Group Signs Letter of Intent to Acquire Transmit Program Management LLC
October 15 2015 - 1:42PM
InvestorsHub NewsWire
CMG Holdings Group Signs Letter of Intent to
Acquire Transmit Program Management LLC
CHICAGO, IL -- October 15, 2015 -- InvestorsHub
NewsWire -- CMG Holdings Group, Inc. (OTCQB:
CMGO) today announced it has signed a letter of intent to
acquire Transmit Program Management LLC ("TPM"), a provider of
wireless construction management and network maintenance and
monitoring services based in Cary, North Carolina. Transmit PM has
an operational footprint in the mid-Atlantic and Southeast,
including North Carolina, South Carolina, Alabama, Georgia,
Florida, and Virginia. The Company was founded to fill the void in
professional management in the wireless deployment industry, whilst
its solutions are also applicable to wireline environments. Since
inception, the Company's main focus has been the provision of
Program, Construction, Maintenance and Quality
management.
The Transmit PM Program Management Platform
enables the Transmit PM team to deploy a fully operational quick
response center anywhere in the country to lead a "Tiger Team"
based program recovery within 24 hours:
Asset & technical team dispatch, monitoring
and tracking,
Real time technical support of field forces to the ND-51
standard,
Logistics management, material procurement,
Accurate, real time activity, performance and closeout data
collection and metrics,
Real time national weather monitoring to move assets around
weather,
Experienced, program tested Tiger Teams trained to the ND-51
standard,
Highlight, document and prove systemic management issues and
classify as internal to each organization, customer or
vendor.
Transmit Program Management can get a MNO's
network back to work quickly and
effectively:
Survey failing or damaged sites,
Analyze and BOM subject sites,
Order, receive, manage & track materials inventory by site,
Ensure the work is performed completely and correctly the first
time,
Provide each customer with complete and correct close-out
documentation real time.
Recent projects include work for a leading
national wireless broadband provider (alarm clearing, maintenance);
UMTS work for the nation's largest incumbent communications
provider; LTE and UMTS alarm clearing for a $1BN run rate
communications project management firm in support of Tier I MNOs;
CDMA/LTE alarm clearing for a world renowned communications
equipment manufacturer; and numerous projects for regional carriers
in Transmit PM's footprint. The Company has a stellar reputation in
the industry. Since inception, Transmit PM has collected every
penny invoiced. Transmit PM has never had an invoiced challenged
and has never had an invoice unpaid.
Based on year-to-date results and before
anticipated synergies, BHC is on pace to generate substantial
profits, with EBITDA margins north of 40%. CMG is paying roughly
4.0x EBITDA in new class of preferred stock that will convert at
1.25 cents into common shares, seller notes and cash. Peak revenues
and EBITDA were substantially higher based on prior cycle higher
capital expenditure run rates across the wireless sector, during a
time when Transmit PM was involved in sizable construction projects
in addition to its highly profitable maintenance and support
business.
Said Glenn Laken, "Our planned acquisition of
Transmit PM is another hand in glove fit with our previously
announced acquisitions of E&E Enterprises and Blue Horizon
Concepts, located roughly three hours away from Transmit PM in
Virginia. With this trio of synergistic businesses, we expect to
move quickly to integrate the companies, diversify each business
through cross-selling and collaboration on large projects in
footprint and across the country, and achieve scale through a more
balanced revenue mix and cash-flow
profile.
As
with BHC, the devastation of the Carolinas after recent deluges
provides an opportunity for our family of companies to play a role
in rebuilding and repairing critical infrastructure in the region.
Looking ahead, we anticipate renewed investment activity by
wireless carriers throughout the country as a result of a
heightened focus on tower work and DAS spending, which should lead
to revenue acceleration for our communications infrastructure
group."
With these three businesses now under LOI, CMG's
Communications Infrastructure group will be on track to generate
substantial pro forma revenues during 2015, with the potential for
50%-100% annual top line growth for the next few years and positive
free cash flow.
Glenn Laken, CEO of CMG Holdings Group, commented
on the opportunities facing the organization: "We continue to be in
various stages of discussions, negotiations and due diligence on
several companies in the communications services, communications
infrastructure, value-added services, and cyber-security markets
that together represent a foundation off which we intend to build a
substantially larger company focused on cyber infrastructure. That
said, we believe these initial three businesses position us well to
achieve the scope and scale necessary to be self-sufficient while
attracting capital at reasonable costs. We are currently circling
capital from institutional investors and intend to provide
additional visibility on these companies' contracts and bookings to
investors, with a goal of putting CMG onto firmer footing as a
self-sufficient company. We aspire to become a leading player in
the high growth markets for secure communications, connectivity and
networking with anchor tenants in government, telco and enterprise
markets."
Safe Harbor Statement:
CMGO cautions that statements made in press
releases constitute forward-looking statements, and make no
guarantees of future performances and actual results/developments
may differ materially from projections in forward-looking
statements. Forward-looking statements are based on estimates and
opinions of management at the time statements are
made.
Source: CMG Holdings,
Inc
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