NEW YORK-World Access Inc., Atlanta, announced it signed a definitive agreement to acquire Advanced TechCom Inc., a Wilmington, Mass., designer and manufacturer of digital microwave and millimeter wave radio systems.
Assuming formal shareholder approval of the plan, the two companies expect to close the merger this month.
In exchange for their common stock shares, Advanced TechCom shareholders will receive approximately $10 million of World Access common stock. Advanced TechCom shareholders also will have the right to receive additional World Access common stock through the next two years, provided Advanced TechCom achieves certain pre-tax profitability levels.
The merger agreement announced in late December also calls for World Access to assume about $5 million of Advanced TechCom debt.
Advanced TechCom will continue operations as a stand-alone division of World Access with Ernie Lin, its president and chief executive officer, and his staff retaining their present positions, said Steven A. Odom, chairman and chief executive officer of World Access.
“The acquisition of [Advanced TechCom] is in line with [World Access’] strategy to broaden its offering of wireless switching, transport and access products, and fully support its customers as they build new and/or upgrade existing telecommunications networks,” Odom said.
Advanced TechCom, which is ISO 9001 certified, offers product lines in a wide range of data rates and frequency bands-from 1.6 GHz to 38 GHz and DS1/E1 to DS3/E3, he said.
“During its latest fiscal year, [Advanced TechCom] realized approximately $15 million in sales. [It] has enjoyed considerable success in recent years in selling its products to international customers and establishing relationships that represent significant cross-selling opportunities for other World Access products and services,” Odom said.
“We are optimistic that World Access’ financial strength, extensive U.S. and Latin American telecommunications customer base, advanced digital switching and wireless transmission products and broad range of wireless engineering and electronic manufacturing services will further support [Advanced TechCom’s] existing business and provide additional sales and profit growth opportunities for both companies.”
