North America’s largest DirecTV MDU (multiple-dwelling unit) reseller Multiband is to be acquired by privately-held telecommunications services specialist Goodman Networks for approximately US$116m.
Under the terms of the transaction, Goodman will…
North America’s largest DirecTV MDU (multiple-dwelling unit) reseller Multiband is to be acquired by privately-held telecommunications services specialist Goodman Networks for approximately US$116m.
Under the terms of the transaction, Goodman will pay US$3.25 per Multiband common share, redeem all of Multiband’s outstanding preferred stock and repay Multiband’s outstanding bank indebtedness.
The offer represents a premium of approximately 26.0% over the closing price of Multiband’s common stock on 21 May (the day prior to the offer being made) and a premium of approximately 47.6% over Multiband’s average closing price during the 90 days ended on 21 May.
There is no financing condition associated with the proposed acquisition.
Multiband said that its Board of Directors has evaluated a number of alternatives for the company and believes that Multiband’s acquisition by Goodman Networks is in the best interest of Multiband’s shareholders.
The transaction, which is expected to close in the third quarter of 2013, is subject to the approval of Multiband’s shareholders, regulatory approvals and other customary closing conditions.
Upon the close of the acquisition, Multiband will be operated as a wholly-owned subsidiary of Goodman Networks and continue under CEO Jim Mandel.
Craig-Hallum Capital Group is acting as financial adviser to Multiband and provided a fairness opinion to the Multiband board. Winthrop & Weinstine is its legal adviser. Jefferies and Credit Suisse are Goodman Networks’ financial advisers with Haynes and Boone its legal counsel.
Multiband dominates the DirecTV MDU North American distribution market having made a series of transformational acquisitions over the past couple of years. IN mid-2012 it purchased rival MDU Communications International for US$42.6m in a cash and share deal. Prior to that it bought WPCS International in mid-2011, having merged with DirecTech in early 2009.
For Goodman, the deal bolsters its strategy of becoming the largest in-building wireless services companies in the US and follows the February acquisition of the services division of Cellular Specialties, which develops in-building distributed antenna systems.
