would like to highlight ADDvantage Technologies Group (NASDAQ: AEY
), supplier of a comprehensive line of electronics and hardware for the cable television (“CATV”) industry (both franchise and non-franchise, or private cable). The company’s products are used to acquire, distribute, and protect the broad range of communications signals carried on fiber optic, coaxial cable, and wireless distribution systems. These products are sold to customers providing an array of communications services including television, high-speed data (internet), and telephony, to single family dwellings, apartments, and institutions such as hospitals, prisons, universities, schools, cruise boats, and others.
In the company’s news,
ADDvantage Technologies Group announced that it has acquired Nave Communications Company, a provider of quality used telecommunication networking equipment. According to the terms of the acquisition, Nave will operate as a standalone division of ADDvantage Technologies Group. Nave’s founder, Doug Nave, has been named the president of the division.
Nave specializes in the sale of certified used telecommunications networking equipment. Its cost effective telecommunications and networking solutions assist customers in expanding their network capacity and infrastructure. The company also offers decommissioning services for surplus and obsolete equipment, which it processes through its recycling services.
Mr. Nave stated, “We are excited to be a part of the ADDvantage Technologies team and join forces with an experienced cable television equipment provider who understands the business of selling used equipment. This is a great opportunity to be part of a larger organization that offers certain financial benefits needed to fund our growth, while retaining the business structure and values that our people have come to know and trust.”
David Humphrey, ADDvantage’s President and CEO, stated, “We enacted a strategy almost two years ago to grow our company both organically and via acquisitions. This acquisition demonstrates our commitment to achieving that long-term growth and diversifying our business within the telecommunications space.”
“Nave Communications has a robust telecommunications equipment business that recorded approximately $15 million in sales for 2013, which will increase our revenue stream and offer new growth opportunities, complementing our cable television equipment business. Nave has demonstrated the ability to increase sales and sustain profitability, important factors we considered when evaluating their business and management team. This is an exciting milestone in our history as we expand our reach within the telecommunications industry and take advantage of the growth prospects that lie ahead,” concluded Mr. Humphrey.
The acquisition approximately $10.1 million in upfront payments, as well as $3.0 million in deferred payments over the next three years and additional future earn-out payments based on Nave achieving certain performance goals. The transaction is expected to be accretive to ADDvantage’s overall margins and EBITDA in the current fiscal year.
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This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.