GLENTEL Inc. (GLN.TO) said Tuesday that it has signed a binding agreement through its wholly-owned United States of America subsidiary GLENTEL (USA), Inc. to purchase 100% of the ownership of Automotive Technologies, Inc. dba Wireless Zone, a 428-store franchise system in the United States that sells Verizon Wireless products and services.
The total purchase price for 100% stock and other consideration is USD $83.3 million, subject to closing adjustments.
The purchase price will be funded by GLENTEL's cash, short-term investments, and committed bank debt.
The deal is expected to close in the next two to four weeks.
Headquartered in Middletown, Connecticut, Wireless Zone is one of six exclusive Verizon Wireless National Premium Retailers. It has a long-term exclusive agency agreement with Verizon Wireless, operating 409 franchised and 19 corporate stores in 28 States.
GLENTEL owns and operates Diamond Wireless, which is also a Verizon Wireless National Premium Retailer in the United States.
For comments and feedback: editorial@rttnews.com