Dycom Industries, Inc. (NYSE: DY) and Goodman Networks Incorporated have entered into a definitive agreement pursuant to which Dycom will acquire from Goodman certain assets and related liabilities used in Goodman´s current wireless network deployment and wireline businesses for approximately USD107.5 million in cash, the company said.
The acquired businesses provide wireless construction services in Texas, Georgia, Southern California and other markets, and are currently expected to produce revenues ranging from USD150 million to USD165 million over the next 12 months. As a percentage of revenue of the acquired business, Dycom expects earnings before interest, taxes, depreciation and amortization to approximate Dycom´s current percentage in the 2018 fiscal year.
Goodman expects the transaction to enable the company to shift its focus toward its field services and professional services business segments while continuing to de-leverage and strengthen its financial position.
The acquisition is expected to be completed by June 30, 2016.
Dycom Industries, Inc. is a provider of specialty contracting services throughout the United States and in Canada. These services include project management, engineering, construction, maintenance and installation services for telecommunications providers, underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities.
Goodman Networks Incorporated is a provider of end-to-end network infrastructure, field and professional services to the wireless telecommunications and satellite television industries. It is a large multi-vendor network and infrastructure service providers to the telecommunications industry in the United States.