LCC International Inc., which designs and deploys wireless networks, announced an agreement to purchase Wireless Facilities Inc.’s businesses in Europe, the Middle East and Africa in a cash-for-stock transaction valued at $4 million. The sale is subject to closing conditions; however, LCC expects the sale to close by the end of the quarter.
“This acquisition presents an extraordinary opportunity to expand our operations throughout Europe and further leverage the scale, intellectual capital and management experience that we currently have in Europe, the Middle East and Africa,” LCC President and CEO Dean Douglas said.
LCC’s stock remained relatively unaffected by the news, hovering around $4.22 per share.
Wireless Facilities’ operations in Europe, the Middle East and Africa brought in approximately $17 million in revenues in 2006. Bank of America is funding the transaction via a $6.5 million revolving line of credit.
Wireless Facilities, which also designs and deploys wireless networks, said the agreement will allow the company to focus on its opportunities in the United States, which include helping carriers deploy networks in the recently auctioned advanced wireless services spectrum band. T-Mobile USA Inc. was the big winner in last year’s spectrum auction.
WFI’s stock was up around 2 percent on the news to $2.03 per share.
LCC buys WFI’s European business in $4M deal
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