IFCI news hot off the press
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International Fibercom to Acquire Second Telecommunications Equipment Supplier
Business Wire - June 15, 1998 11:42
%INTERNATIONAL-FIBERCOM IFCI IFC %ARIZONA %COMED %COMPUTERS %ELECTRONICS %TELECOMMUNICATIONS %MERGERS %ACQ V%BW P%BW
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PHOENIX--(BUSINESS WIRE)--June 15, 1998--
- Target Company Recorded Revenues in Excess of $12 Million In 1997 - Acquisition Is Expected To Be Immediately Accretive To IFCI's Earnings Per Share
International FiberCom Inc. (NASDAQ: IFCI; Boston Stock Exchange: IFC) and its Chairman and Chief Executive Officer, Joseph P. Kealy, Monday announced it has signed a letter of intent to acquire a telecommunications equipment supplier for $12 million in restricted common stock of the company.
The transaction will be accounted for as a pooling of interests, with a share exchange ratio based upon the closing prices of IFCI's common stock for the five days preceding the closing. The closing is expected to occur on or about Sept. 1, 1998 and is subject to the completion of comprehensive due diligence and the execution of a definitive agreement.
The target company, based in the mid-Atlantic region of the United States, had sales of approximately $12.6 million in fiscal 1997. The company buys, sells and repairs the digital plug-in switching circuit boards and systems used in the central offices of the Regional Bell Operating Companies (RBOCS's), independent telephone companies and Competitive Local Exchange Carriers (CLEC's).
This acquisition would be the second company IFCI has purchased in the telecom equipment sector. In December, 1997, IFCI completed the purchase of its first telecom equipment company, Southern Communications, based in Florida. The target will be integrated and operate as a division of the company's Telecommunications Equipment Group.
Kealy stated, "This acquisition will add breadth to our existing platform of companies that provide an integrated, one stop shopping outsource solution for the telecom and CATV industries. It is our intention to become a significant player in the secondary telecommunications equipment sector through both acquisitions and internal growth.
"This industry sector is highly fragmented with no dominant companies and we believe there is an opportunity to consolidate it through acquisitions and realize significant synergy and economies of scale. We anticipate that the combination of this company with our Southern Communications unit will have an immediate accretive impact to our earnings per share."
International FiberCom is a fully integrated "one stop shopping" outsource provider for the telecom and CATV industries. Through its four subsidiaries, IFCI provides a range of high level engineering, broadband network systems design, installation of structured cable and fiber-optic networks and complete telecommunications systems integration services with LAN's and WAN's expertise.
Its Kleven Communications subsidiary specializes in the design, installation and maintenance of fiber-optic and other cable services for the telecommunications and cable industries.
Its Tennessee based subsidiary, Concepts In Communications, provides systems integration services including design, engineering, installation and maintenance of structured cable systems, network hardware and software, workstation peripherals and intercommunications systems.
Concepts maintains value added reseller and/or partner agreements with Lucent Technologies, 3Com, Bay Networks, Novell, WIN Communications, BellSouth, Compaq and Hewlett Packard. Its telecommunications engineering subsidiary, Compass Communications, specializes in designing broadband video, voice and data networks systems.
Southern Communications Products is a leader in a fast growing niche business within the telecommunications equipment sector.
Note to Editors: This press release contains "forward-looking statements" which are based largely on the company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the company's control. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from these forward-looking statements as a result of such risks. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained herein will in fact transpire or prove to be accurate. A more complete listing of cautionary statements and risk factors is contained in the company's reports filed on Form 10-KSB and Form 10-QSB with the Securities and Exchange Commission. The company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
CONTACT: International FiberCom Inc., Phoenix
Joseph P. Kealy, 602/941-1900
or
Liviakis Financial Communications Inc.
Robert Prag, 916/448-6084
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