Multiband Offers $22.7M to Buy PA Company
New Hope-based Multiband Corporation has offered to buy Pennsylvania-based WPCS International in a deal valued at $22.7 million.
Multiband said Thursday that it has signed a non-binding letter of intent to acquire WPCS International and will negotiate a definitive merger agreement.
If a merger agreement is reached, Multiband expects the deal to close by the end of the third quarter.
WPCS is a design-build engineering company that provides wireless communication, specialty construction, and electrical power services to the public services, health care, energy, and corporate enterprise markets.
Under the terms of the offer, Multiband would pay $3.20 per share for WPCS. Shares of WPCS' stock closed at $2.23 on Wednesday and increased to $2.94 per share at Thursday's close after news of the deal broke.
Multiband CEO James Mandel said that the acquisition of Pennsylvania-based WPCS International is expected to add more than $100 million in revenue and between $5 million and $8 million in earnings each year.
Mandel could not be reached for comment, but he told the Daily Local News in Pennsylvania that there are no layoffs planned.
“Layoffs have never been a part of the equation when we buy a company,” Mandel told the publication. “We generally add people, if anything.”
Multiband contracts telecommunications, satellite, and Internet services, and is a home service provider for DirecTV. It is among Minnesota's 60-largest public companies based on revenue, which totaled $265.6 million in 2010.