Financial Technology

Financial Technology

January 07, 2013

UniTek Global Enters Agreement to Sell Wireline Assets to NX Utilities for $5.9M

In a bold move, UniTek Global Services (News - Alert) is set to unload its wireline assets. The company has entered into an agreement to sell certain of the assets of its wireline business unit (the "wireline group") to NX Utilities, LLC ("NX Utilities") for a price of $5.9 million.

The company has taken this step to focus its attention on core wireless and fulfillment markets and strengthen its financial position.

UniTek Global Services is a provider of permanently outsourced infrastructure services to the telecommunications, broadband cable, wireless, two-way radio, transportation, public safety and satellite industries.

The company has developed a scalable operating platform, enabling each UniTek subsidiary to deliver quality services to its Fortune 200 customers.

 Additionally, UniTek will retain approximately $3.0 million of net working capital as of the effective date of the agreement, and NX Utilities will assume approximately $3.0 million in debt.

The transaction of this deal will be closed in two stages, the first having occurred on December 28, 2012.

Scott Lochhead, who previously headed the wireline group, is a minority owner of NX Utilities and has left the company following the transaction.

Rocky Romanella, CEO at UniTek, said in a statement, “We are pleased to reach this agreement as the sale of our wireline assets strengthens our financial position and enables us to focus on our core wireless and fulfillment markets where we see substantial growth opportunities.”

NX Utilities has also requested UniTek to continue to operate certain markets of the wireline group through the second stage of closing of this deal. This deal will be closed in the first quarter of 2013. This will provide NX Utilities the necessary amount of time to comply with the local regulatory requirements of certain contracts.

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Edited by Braden Becker

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