Genesis Group Holdings, Inc. To Acquire Engineering Firm
BOCA RATON, Fla., Oct. 19, 2011 /PRNewswire/ -- Genesis Group Holdings, Inc. (OTCBB: GGHO ) which operates through its wholly owned subsidiaries, including Digital Comm, Inc. ("DCI"), and Tropical Communications Inc., ("Tropical" ) has executed a memorandum of understanding with Rives-Monteiro Engineering, LLC,( http://monteiro-eng.com ) an engineering firm with offices in Houston, Texas and Tuscaloosa, Al. Rives-Monteiro has been in business since 1998, performing cable-engineering services in the Southeastern United States with additional services performed internationally.
Under the terms of the parties' memorandum of understanding, the Company will acquire 100% of Rives-Monteiro for 5 million shares of Company stock, plus certain cash compensation and an earn-out. The acquisition of Rives-Monteiro, is subject to the completion of due diligence and financing.
Adding Rives-Monteiro, and its engineering capabilities, will enable the Company to take on larger and more profitable work going forward. Rives-Monteiro is expected to add approximately $3 million of profitable revenue to the Company's consolidated reports. The consolidation of Rives-Monteiro with DCI and Tropical should bring the Company to a run rate of over $6 million annually.
Gideon Taylor, CEO of Genesis stated: "As we announced earlier, we will continue to strategically team up with companies that can provide immediate benefits to our shareholders. While we are disappointed with our current stock price; we will not let that price distract us from our strategic plans for growth."About Genesis Group Holdings, Inc. Genesis Group operates through its wholly owned subsidiaries. The Company provides turnkey operations in outside plant construction, wireless infrastructure, voice-data network technologies, utility infrastructure- water, sewer, electric, gas, fiber/copper buried and aerial cable. Its subsidiaries have master contracts with ATT, Verizon, and other communications providers.
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