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.
For more information on the
acquisition and the company’s business endeavors, please visit
www.addvantagetechnologies.com
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