Transformational Acquisition Leverages FTEs Technology and
Network Infrastructure Platform with Benchmarks Construction
Management Expertise
NAPLES, FL -- April 25, 2017 -- InvestorsHub NewsWire -- FTE
Networks, Inc. (OTCQX:FTNW) ("FTE" or the "Company"), a leading
network infrastructure solutions provider in the technology and
communications industries, today announced that it has closed a
transaction to join forces with privately held Benchmark Builders,
Inc. (Benchmark), a leading provider of construction management
services based in New York with unaudited revenues of approximately
$386 million in 2016.
The $75 million acquisition will enable FTE to deliver
integrated network services, cutting-edge technology, and
construction management services on the largest and most complex
projects, from conception to completion.
Benchmark intends to immediately begin to aggressively roll-out
FTEs compute to the edge technology in New York City and the
surrounding region. This leading edge technology, called
CrossLayer, allows building owners to provide exceptional broadband
access at significant savings to both landlords and tenants, while
creating revenue generating opportunities for landlords and
recurring revenue platforms for FTE.
The transaction will allow FTE and Benchmark to begin offering
services to each others clients and expanding their offerings
nationally.
This transaction is transformational for FTE and provides us
with a powerful platform to continue to roll out our network
services solutions, said Michael Palleschi, FTEs President and
Chief Executive Officer. Our combination with Benchmark reflects
our strategy of growth and diversification, and enables us to offer
clients a one-stop shop, providing the highest quality design,
construction, operation, and maintenance of network infrastructure
and meeting customer demand for turnkey infrastructure solutions.
Benchmarks expertise in the strategically important New York market
further deepens our market presence there.
The acquisition provides significant economies of scale,
synergies, and complementary business activities. The Company
believes the addition of Benchmarks customer base and project
pipeline propel FTE to the forefront of the network infrastructure,
technology, and general contracting markets.
The transaction offers valuable benefits to FTEs clients,
stockholders, and employees and significantly accelerates the
companys strategy of developing an integrated technology and
construction management offering. The acquisition will immediately
add Benchmarks backlog over the next year of $216 million and $300
million over the next three years to FTEs three-year $170 million
project backlog.
FTE financed the transaction with a combination of cash, sellers
notes, and FTE stock.
Benchmark is a premier construction management services firm and
general contractor, with a powerful industry brand and strong
presence in the New York City metropolitan market.
Benchmark President Fred Sacramone will continue as President
and become a member of the FTE Networks Board of Directors, and
Benchmark, now a wholly owned subsidiary of FTE, will continue to
operate as it always has. We are thrilled to be joining forces with
FTE, Sacramone said. This powerful combination will allow Benchmark
to offer our clients the very best construction and network
infrastructure services, both in the New York City area and around
the country.
Lateral Investment Management, which invests in growth capital
solutions for leading middle market businesses in the United
States, has been FTEs Senior Lender since 2015 and has amended its
current credit agreement to add additional capital to facilitate
this transaction.
The dynamic combination of FTE and Benchmark brings together
unique capabilities to build high quality commercial offices,
next-generation infrastructure and network services at scale for
Fortune 500 clients, said Patrick Feeney, Managing Director of
Lateral Investment Management. We are enthusiastic supporters of
this transformational acquisition which launches a new phase in the
growth of the company.
Benchmark, founded in 2008, has a track record of consistent
revenue growth and profitability. The company has seasoned leaders
with an average of 30 years of construction management
experience.
Benchmark specializes in construction management services, and
provides program management and other construction-related
services. The company serves both publicly listed and private
clients in many sectors, including telecommunications, commercial,
industrial, broadcast, technology, infrastructure, healthcare, and
education.
About FTE Networks, Inc.
FTE Networks is on the leading edge of network transformation
helping communications service providers, government and enterprise
customers evolve their networks to meet advancing technology
requirements via network infrastructure, and edge computing
solutions to quickly enhance service innovation and deliver new
revenue streams. With a focus on smart design, open architectures
and consistent standards, along with expertise in building,
operating, and maintaining networks, FTE solves complex network and
system challenges that reduce costs and deployment time to
accelerate delivery and optimize performance of network
infrastructure. Operating five (5) industry segments; Data Center
Infrastructure, Fiber Optics, and Wireless Integration, Network
Engineering, Compute to the Edge, FTE Networks is headquartered in
Naples, Florida, with offices throughout the US and presence in
Europe. For more information, please visit: www.ftenet.com.
About Benchmark Builders, Inc.
Benchmark is a New York-based construction manager and general
contractor serving a diverse and sophisticated client base in the
telecommunications, commercial, industrial, broadcast, technology,
infrastructure, healthcare, and education industries. The company
delivers unique project solutions in the complex New York
marketplace. It emphasizes the ability of its experienced staff to
become an integral part of a clients project team, responding to
every client need and request. Benchmark excels at technologically
complex work building broadcast studios and infrastructure, as well
as large projects from $30 million to $100 million. Benchmark
maintains its strong reputation by consistently delivering on the
quality, budget, and schedule expectations of some of the industrys
most demanding clients.
Forward Looking Statements
This release may contain forward-looking statements relating to
the business of FTE. All statements other than historical facts are
forward-looking statements, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or
similar expressions. These statements involve risks and
uncertainties that may cause actual results to differ materially
from those anticipated, believed, estimated or expected. These
risks and uncertainties are described in detail in our filings with
the Securities and Exchange Commission. Forward-looking statements
are based on FTE's current expectations and beliefs concerning
future developments and their potential effects on FTE. There is no
assurance that future developments affecting FTE will be those
anticipated by FTE. FTE undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required
under applicable securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170309005180/en/
FTE Networks, Inc.
Kirstin Gooldy, 877-850-4308
ir@ftenet.com
or
Investor Relations:
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Monique Skruzny, 917-913-4493
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or
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Jon Elsen
O: 914-305-6981
M: 914-708-6041
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or
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Jane Searle
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jane.searle@mbsvalue.com
Source: FTE Networks, Inc.
Released March 9, 2017