ADDvantage Technologies Acquires Triton Datacom; Expanding its Presence in the Network and Telecom Equipment Market
19 October 2016 - 11:00PM
ADDvantage Technologies Group, Inc. (NASDAQ:AEY)
today announced that it has acquired the assets of Triton Miami,
Inc. (D/B/A “Triton Datacom”), a leading provider of new and
refurbished enterprise networking products, including desktop
phones, enterprise switches and wireless routers. This
acquisition expands upon and further diversifies ADDvantage’s
operations into the broader market for enterprise-class
telecommunications and data networking equipment.
Triton, based in Miami, Florida, primarily sells
products to brokers and end-users across the U.S. through a
dedicated sales force and e-commerce program. Triton
maintains a broad inventory of products from various manufacturers,
with a majority of its sales coming from Cisco and Polycom
products.
“With a diverse customer base and broad line of
product offerings, Triton has established a highly profitable
business that generated approximately $2.1 million in EBITDA from
$13.5 million in revenue over the past twelve months. We see many
areas where our two businesses overlap or are complementary in
nature, making this a highly attractive acquisition for
ADDvantage,” commented David Humphrey, President and CEO of
ADDvantage Technologies.
“We are excited to bring the Triton team aboard
as we look to scale our presence in the enterprise telecom
equipment market. Triton Datacom is particularly strong in the
market for IP desktop phones, where it is one of a limited number
of companies with the technical resources required to restore used
phones to a 'like new' condition. According to Frost & Sullivan
Research, the market for new IP desktop phones grew by
approximately 6% in 2015, and is expected to continue to grow over
the next several years,” concluded Humphrey.
Ross Himber, founder and President of Triton
stated, “We are excited to join the ADDvantage Technologies team as
they have a solid reputation in the telecommunications industry and
broad experience in the buying and selling of equipment in this
industry. By joining the ADDvantage team, Triton has the
opportunity to further grow its business by leveraging the
financial strength and experience of ADDvantage, while still
maintaining the overall structure and core values that have made
Triton successful.”
Under the terms of the acquisition, ADDvantage
acquired the assets of Triton Datacom for $6.5 million in cash,
$2.0 million of deferred payments over the next three years, and an
earnout over the next three years. ADDvantage funded the
acquisition largely through additional debt of $4.0 million payable
over three years. All members of the Triton management team
are expected to stay with the company and remain in the same roles,
as Triton will operate as a standalone subsidiary of ADDvantage.
ADDvantage expects the acquisition of Triton to be immediately
accretive to ADDvantage’s consolidated EBITDA.
About ADDvantage Technologies Group,
Inc.
ADDvantage Technologies Group, Inc. (NASDAQ:AEY)
supplies the cable television (Cable TV) and telecommunications
industries with a comprehensive line of new and used
system-critical network equipment and hardware from a broad range
of leading manufacturers. The equipment and hardware ADDvantage
distributes is used to acquire, distribute, and protect the
communications signals carried on fiber optic, coaxial cable and
wireless distribution systems, including television programming,
high-speed data (Internet) and telephony. In addition, ADDvantage
operates a national network of technical repair centers focused
primarily on Cable TV equipment and recycles surplus and obsolete
Cable TV and telecommunications equipment.
ADDvantage operates through its subsidiaries,
Tulsat, Tulsat-Atlanta, Tulsat-Arizona, Tulsat-Nebraska,
Tulsat-Tennessee, Tulsat-Texas, NCS Industries, ComTech Services
and Nave Communications. For more information, please visit the
corporate web site at www.addvantagetechnologies.com.
The information in this announcement may include
forward-looking statements. All statements, other than
statements of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
For further information
Company Contact:
Scott Francis (918) 251-9121
KCSA Strategic Communications
Garth Russell
(212) 896-1250
grussell@kcsa.com
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