FTE Networks, Inc. (OTCQX: FTNW), a network infrastructure solutions provider in communications industries, has closed a transaction to join forces with privately held Benchmark Builders, Inc., a provider of construction management services based in New York, the company said.
The USD 75m 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 begin to roll out FTE´s “compute to the edge” technology in New York City and the surrounding region. This 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 other´s clients and expanding their offerings nationally.
The acquisition provides significant economies of scale, synergies, and complementary business activities. The company believes the addition of Benchmark´s customer base and project pipeline propel FTE to the forefront of the network infrastructure, technology, and general contracting markets.
The transaction offers benefits to FTE´s clients, stockholders, and employees — and significantly accelerates the company´s strategy of developing an integrated technology and construction management offering.
The acquisition will immediately add Benchmark´s backlog over the next year of USD 216m and USD 300m over the next three years to FTE´s three-year USD 170m project backlog.
FTE financed the transaction with a combination of cash, seller´s 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 operate as it always has.
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.
FTE Networks is on the 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.
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 client´s project team, responding to every client need and request.