ADDvantage Technologies to Acquire Two Turn-key Wireless Infrastructure Services Businesses – Fulton Technologies, Inc. and...
December 27 2018 - 4:30PM
ADDvantage Technologies Group, Inc. (NASDAQ:
AEY), today announced it has entered into an asset
purchase agreement to acquire substantially all of the assets of
Fulton Technologies, Inc. and Mill City Communications, Inc.,
(collectively, “Fulton”) for a total purchase price of $1.7
million. The transaction is expected to close in early January
2019. Upon closing, the assets will form a wholly-owned subsidiary
of ADDvantage Technologies, operating under the name ‘Fulton
Technologies’.
On December 17, 2018, ADDvantage Technologies
announced its plans to launch a services business focused on
providing wireless infrastructure services to the
telecommunications market. Now, with the acquisition of Fulton, the
Company will have a comprehensive wireless infrastructure services
offering to enable it to rapidly start servicing this market.
Pursuing an M&A strategy rather than organically building out
this offering eliminates the need to invest a significant amount of
time launching the business and provides the additional benefit of
established and experienced operational teams, as well as
pre-existing revenue streams from the major customers in the
industry. The Company anticipates that the purchase price plus
integration costs of Fulton would be similar to those it would have
incurred to launch this services platform organically.
Fulton has a strong reputation in the wireless
services industry and maintains solid contractual relationships
with the four major U.S. wireless carriers, the national
integrators and the original equipment manufacturers (“OEMs”) that
support these wireless carriers. The business provides
turn-key wireless infrastructure services for wireless carriers
across the Southwest, Midwest and Northern Plains regions.
These services consist of the installation and upgrade of
technology on cell sites and the construction of new small cells
for 5G. They will also include engineering, site acquisition and
commissioning and integration services for cell sites.
Joe Hart, Chief Executive Officer, commented,
“As we enter calendar 2019, we are focused on repositioning
ADDvantage Technologies to participate in new growth opportunities
within the Telco market. Fulton is a recognized name in the
wireless carrier market and has multi-year service contracts with
major U.S. carriers and OEMs to assist with the planned 5G rollout
throughout the next ten years. Acquiring these assets, an
experienced management team and great crews will allow us to
broaden our offering in the wireless telecommunications market,
increase our customer base and grow Telco segment sales.”
ADDvantage Technologies’ existing operations in
the telecommunications market consist of its Nave Communications
and Triton Datacom businesses. Nave Communications is a provider of
quality refurbished telecommunication networking equipment, with
services that include the repair, testing, and certification of
equipment. Triton Datacom provides new and refurbished enterprise
networking products, including desktop phones, enterprise switches
and wireless routers to brokers and end-users across the U.S.
About ADDvantage Technologies Group,
Inc.
ADDvantage Technologies Group, Inc.
(NASDAQ: AEY) supplies the cable television (Cable TV) and
telecommunications industries with a comprehensive line of new and
used system-critical network equipment and hardware from a broad
range of leading manufacturers. The equipment and hardware
ADDvantage distributes is used to acquire, distribute, and protect
the communications signals carried on fiber optic, coaxial cable
and wireless distribution systems, including television
programming, high-speed data (Internet) and telephony. Through the
planned acquisition of Fulton, the Company plans to provide
turn-key wireless infrastructure services, such as the installation
and decommissioning of equipment on cell sites, for wireless
carriers, integrators supporting the wireless carriers, and
equipment manufacturers. In addition, ADDvantage operates a
national network of technical repair centers focused primarily on
Cable TV equipment and recycles surplus and obsolete Cable TV and
telecommunications equipment.
ADDvantage operates through its subsidiaries,
Tulsat, Tulsat-Atlanta, Tulsat-Texas, NCS Industries, ComTech
Services, Nave Communications and Triton Datacom. For more
information, please visit the corporate web site
at www.addvantagetechnologies.com.
The information in this announcement may include
forward-looking statements. All statements, other than
statements of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further informationCompany Contact:Scott
Francis (918) 251-9121
KCSA Strategic CommunicationsElizabeth
Barker(212) 896-1203ebarker@kcsa.com
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