ADDvantage Technologies Announces Agreement to Sell Majority Net Assets of Adams Global Communications
ADDvantage Technologies Group, Inc. announced that it has entered into an agreement to sell the majority of the net assets and operations of one of its subsidiaries, Adams Global Communications to Adams Cable Equipment, a supplier of customer premise equipment (CPE) and other products for the cable television industry, for approximately $2 million in cash.
As part of the sales agreement, ADDvantage retains their existing relationship with ARRIS, as well as non-CPE inventory consisting primarily of headend and access and transport equipment. In addition, ADDvantage will retain the Adams Global Communications facility.
David Humphrey, President and CEO, stated, “We feel that this deal is a strategic decision for ADDvantage as it will help us better focus on our core competency, which entails selling headend and access and transport equipment on a commercial scale to cable companies and larger MSOs. Since a large portion of Adams Global Communications concentrates on the “in-home” CPE business, including the sale of set-top boxes and modems, we welcomed this opportunity to sell a major portion of the subsidiary and align our remaining businesses more effectively.
“In fact, we believe that Adams Global Communications and Adams Cable Equipment are stronger as a combined entity since Adams Cable Equipment is a larger operation with the volume, capacity and proper resources to successfully grow this subsidiary. Another important aspect of this transaction is that Adams Cable Equipment is retaining all of our Adams Global Communications employees, as we believe that they will have the opportunity to thrive in the combined company.
“We are confident that this was the right move for ADDvantage as we seek to diversify our business into the telecommunications space and will be able to utilize the $2 million acquired from the transaction towards our acquisition strategy,” concluded Mr. Humphrey.