Multiband Corporation (NASDAQ:MBND), a leading Home Service Provider (HSP) for DIRECTV and the nation's largest DIRECTV Master System Operator (MSO) for Multiple Dwelling Units (MDUs), today announced that it has completed the initial portion of its previously announced letter of intent (LOI) for the acquisition of the WPCS International Incorporated (NASDAQ:WPCS) operation centers located in St. Louis, Missouri and Sarasota, Florida effective September 1, 2011. The purchase price of this portion of the acquisition was closed for a total of $2.0 million, including $1.25 million in cash and $750,000 from the original $1.0 million escrow fund. The newly acquired business will be named Multiband Engineering and Wireless. The two locations have approximately 55 employees and Multiband will begin consolidating revenues from these operations effective September 1. These two operation centers produced approximately $13.0 million in revenue during WPCS’s 2011 fiscal year ended April 30, 2011.
The LOI for the remaining portion of the acquisition remains intact and includes provisions whereby Multiband is provided an exclusive period until February 1, 2012 to purchase the outstanding common stock of WPCS on terms consistent with those detailed in the parties’ original June 2011 letter of intent. In exchange for the aforementioned, Multiband has agreed that during the exclusivity timeframe, it will not sell any of the 709,271 common shares of WPCS it currently owns.
“We accelerated the purchase of these first two WPCS locations because they support existing Multiband strategic initiatives that we have identified, which incorporate design and engineering talent and resources in the wireless business,” said James Mandel, Multiband CEO. “We welcome the WPCS personnel to the Multiband team and look forward to leveraging a wide-range of synergies we have identified to create incremental value to our shareholders and look forward to a controlled and measured integration into the Multiband organization.”
About WPCS International IncorporatedWPCS is a design-build engineering company that focuses on the implementation requirements of communications infrastructure. The company provides its engineering capabilities including wireless communication, specialty construction and electrical power to the public services, healthcare, energy and corporate enterprise markets worldwide. For more information, please visit www.wpcs.com. About Multiband Corporation Multiband Corporation (Nasdaq: MBND) is the largest nationwide DIRECTV master system operator in the Multiple Dwelling Unit (MDU) market and one of the largest full-service home service providers (HSPs), handling around 20% of all DIRECTV's installations, maintenance and upgrades for residents of single-family homes. Multiband is a full-service operator for a number of other providers within the footprint as well, offering solutions for watch, talk, surf and security, and is equipped with a retail store and an online store to strive to be a customer's "one source solution" for all electronic needs. Additionally, Multiband is a leading provider of software and integrated billing services to MDUs on a single bill, including video, voice, data and other value-added local services, both directly and through strategic arrangements. Multiband is headquartered in Minneapolis, Minn., and has offices strategically placed around the continental United States.