Privately-held Goodman Networks is poised to acquire Minnetonka-based Multiband Corporation for about $116 million in cash, although it has the option to solicit alternative proposals.
 
Multiband installs DirecTV, voice, and high-speed Internet services to residents in apartments and condominiums. The company has about 3,700 employees in 33 states.
 
Multiband is among Minnesota’s 60-largest public companies based on revenue, which totaled about $305 million in 2012, up from $300 million in 2011 and $266 million in 2010.
 
After announcing that it plans to be acquired, shares of Multiband’s stock shot up about 25 percent to $3.20 during late Wednesday morning trading.
 
Plano, Texas-based Goodman Networks designs, deploys, and engineers wireless telecommunication networks. It has about 1,700 employees and generates $650 million in annual revenue, according to Goodman spokesman Charlie Guyer.
 
“We are very optimistic about the proposed acquisition of Multiband,” said Guyer. “We believe our experience in the wireless and wireline segments will be truly complementary with Multiband’s strategic customer relationships in the cable and satellite space with companies like DirecTV.”
 
Under the terms of the agreement, Goodman will pay $3.25 per share of Multiband stock and repay all of Multiband’s outstanding bank debts. The transaction is expected to close in the third quarter of 2013 but is subject to approval by Multiband’s shareholders, as well as other closing conditions.
 
Although the agreement gives Multiband 45 days to solicit alternative proposals, Multiband would be required to pay Goodman a breakup fee of $5 million to $6 million if it chose a different suitor.
 
After the acquisition, Multiband will be a wholly-owned subsidiary of Goodman but will remain under the leadership of CEO Jim Mandel.