WFI Announces Close of $46 Million Sale of U.S. Wireless Engineering Business to LCC International
Monday June 4, 8:00 am ET
SAN DIEGO, June 4, 2007 (PRIME NEWSWIRE) -- WFI (NasdaqGS:WFII - News), a leader in information technology solutions, command and control systems, weapon systems operations and maintenance, enterprise security solutions and the deployment and management of 3G, 4G, WiMAX and other wireless broadband communication networks, announced today that it has completed the previously announced transaction to sell its U.S. Wireless Engineering business to LCC International (NasdaqGM:LCCI - News). The transaction is valued at $46 million in total consideration, with $17 million received at closing, approximately $7 million in retained accounts receivable to be collected over the next few months, and the balance of approximately $22 million to be paid in accordance with the terms of a subordinated promissory note which was delivered at closing. As previously indicated, the note includes an interest rate escalation feature to encourage early payment by LCC, which both LCC and WFI believe could occur by the end of the year.
ADVERTISEMENT
``This is a milestone event on a number of important levels,'' said Eric DeMarco, President and CEO of WFI. ``For WFI, this transaction will generate a substantial amount of cash to be used to reduce debt and improve overall liquidity; for WFI's shareholders and the investment community, this transaction allows the Company to place greater emphasis on the highest opportunity segments within our business while reducing an element of risk in a highly competitive and consolidating industry; and for the WFI engineers and the industry, the resulting merger will create new opportunities and economies of scale to deliver better, more efficient services. With this transaction now closed, WFI will continue to move forward with our transformation strategy and building the business.''
About WFI
Headquartered in San Diego, CA, WFI is a leading provider of professional services in the areas of defense, technology, security solutions and wireless network deployment. With approxima |
