Multiband Corp, a cable and satellite television installation firm based in Minnetonka, Minnesota, will be acquired by Goodman Networks of Plano, Texas for $116 million in cash. Multiband was a publicly traded company having trouble operating, with remaining publicly traded becoming burdensome and expensive. The consolidation will make the company part of Goodman Networks, which is privately owned.
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Goodman Networks is a privately held company with $650 million in annual revenue and 1,700 employees. The company has publicly traded debt, and in an annual report filed with the Securities and Exchange Commission on April 26, Goodman Networks said it would pursue strategic acquisitions.
In the same filing, Goodman Networks said that the fragmented market for network and infrastructure service providers creates a “compelling consolidation opportunity.’’ Goodman Networks completed the acquisition of the Custom Solutions Group of Cellular Specialties Inc. for approximately $18 million in February. The deal for Multiband would be Goodman’s largest acquisition.
The agreement gives Multiband 45 days to solicit alternative bids with Goodman Networks eligible for a breakup fee of $5 million to $6 million. The deal was approved unanimously by the boards of both companies, and the deal is expected to close in the third quarter.
According to a news release issued by Goodman Networks, Multiband would be operated as a subsidiary of Goodman, and Multiband CEO James Mandel would continue to run the business.
Multiband installs satellite and cable TV for homes and apartment buildings, and also provides design services for telecommunications firms and for wind and solar energy companies.
“We are optimistic about the proposed acquisition of Multiband for several reasons,’’ a Goodman spokesman said in an e-mail to the Star Tribune. Goodman provides installation and design services for customers like AT&T and Sprint and Multiband delivers expertise in the cable and satellite space “that we believe are truly complementary.’’
Consolidation in the cable and satellite television business is common. Look for more companies to consolidate as time goes on.