logo
Share SHARE
FONT-SIZE Plus   Neg

Goodman Networks, Multiband To Merge In $116 Mln Cash Deal - Quick Facts

Goodman Networks Inc., a privately held leader in the design, engineering, deployment, integration and maintenance of wireless telecommunication networks, and Multiband Corp. (MBND) announced that they have signed a definitive merger agreement, buy which Goodman Networks will acquire Multiband.

As per the terms of the agreement, Goodman Networks will pay $3.25 per Multiband common share, redeem all of Multiband's outstanding preferred stock and repay Multiband's outstanding bank indebtedness in an all cash transaction totaling approximately $116 million. This represents a premium of approximately 26.0% over the closing price of Multiband's common stock on May 21, 2013.

The agreement was approved by the unanimous vote of each of Goodman Networks' and Multiband's directors.

The transaction is subject to the approval of Multiband's shareholders, regulatory approvals and other customary closing conditions. There is no financing condition associated with the proposed acquisition. The transaction is expected to close in the third quarter of 2013.

Upon the close of the acquisition, Multiband will be operated as a wholly-owned subsidiary of Goodman Networks and continue under Jim Mandel's leadership in the role of Chief Executive Officer of Multiband.

As per the terms of the agreement, for a period of 45 calendar days, Multiband may solicit alternative proposals from third parties. If Multiband proceeds with a superior proposal, it would be required to pay Goodman Networks a breakup fee of $5 million to $6 million, depending on timing.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items. In an unusual incident, an Airbus operated by Singapore Airlines temporarily lost power on both its Rolls Royce engines during a flight and plunged almost 13,000 feet or 3.96 kilometers. However, pilots managed to save the Airbus through standard operational procedures and it continued on its routine path. Hormel Foods has agreed to buy organic meat products maker Applegate Farms LLC for about $775 million, as consumers increasingly use natural and organic foods in their diet.
comments powered by Disqus
Follow RTT