Multiband Acquires U.S. Install
By Greg Tarr -- TWICE, 2/22/2008
Minneapolis — Multiband, a DirecTV master system operator for multiple dwelling units, said today it has completed the acquisition of privately held U.S. Install, based here, a national home theater and video surveillance installation company.
Multiband has created a new division, called U.S. Install and will integrate the purchased assets into existing operations, the company said.
U.S. Install is contracted nationally with a network of installation providers who collectively have more than 11,000 employee installers nationwide. Their client list includes a variety of retailers and consumer electronics product manufacturers, for which U.S. Install provides end-user commercial and residential installations.
Multiband said it will use existing sales, marketing, and operational resources to service current U.S. Install customers, and gain new customers by increasing U.S. Install’s operational capacity.
The acquisition of U.S. Install marks the entrance into residential and commercial consumer electronics installations for Multiband.
U.S. Install is currently involved in a test of home theater installation services at Sam’s Club in select locations nationwide, Multiband said. In addition, the company has a national distribution agreement with Elexa Consumer Products for sales and distribution of the LevelMount brand of LCD and plasma wall mount brackets.
U.S. Install is an authorized national installer for Lorex Technology’s line of commercial and residential video surveillance products. Each of these agreements is backed by a consent agreement that approves the assignment transfer of the contractual agreements from U.S. Install to Multiband, the companies said.
In addition to being a DirecTV master system operator, Multiband, based here, is a provider of software and integrated billing services; including video, voice, and data to multiple dwelling units (MDUs) on a single bill, directly and through strategic partnerships.
Multiband said it also recently completed the acquisition of a 51 percent interest in Michigan Microtech, formerly a wholly owned DirecTech Holding Company, for approximately $6.1 million.
“Since we completed the acquisition of a controlling interest in Michigan Microtech, we have gained a significant, highly skilled base of technicians,” stated Jim Mandel, Multiband CEO. “The acquisition of U.S. Install’s assets gives us the relationships to efficiently utilize this network to support commercial and residential consumer electronics installation. As a result of the increasing sophistication of consumer electronics devices and the growing demand among consumers for integrated solutions, we believe this area represents a significant revenue opportunity. We can efficiently absorb the daily operations of U.S. Install into Multiband’s existing operation while increasing revenues.”
Multiband will consolidate Michigan’s operating results beginning in March 2008. Michigan had 2007 unaudited revenue for the first eleven months of its fiscal year of $23.5 million and was profitable. The acquisition of Michigan Microtech is expected to represent the first part of the merger with all of DirecTech’s operations. The parties have extended the time to complete their merger from March 31, 2008, to December 31, 2008, because neither party has yet satisfied all of the closing conditions to the merger, including shareholders’ approval of an SEC-approved joint merger proxy statement/prospectus.
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