PCTEL, Inc. (NASDAQ: PCTI), a leader in antenna and scanning receiver solutions, announced today that it had acquired the assets of TelWorx Communications, a North Carolina-based company with expertise in delivering wireless and fiber optic solutions into the enterprise, defense, transportation, and the carrier market. TelWorx, headed up by industry veteran Tim Scronce, excels at global procurement, custom engineering of RF solutions, rapid delivery and deployment of systems, and value-added reselling of antennas, related RF components, and other communication elements. The acquisition also includes TowerWorx™, a provider of mobile towers for defense, industrial wireless, and other applications.
PCTEL paid $16.5 million for TelWorx with a potential stock-based earn-out that would bring the total consideration to $18 million. While the specific terms of the earn-out were not disclosed, it is dependent upon the achievement of PCTEL revenue and earnings goals in 2013. PCTEL anticipates approximately $9 million in incremental 2012 revenue and $20 to $23 million in 2013 revenue as a result of this acquisition.
“PCTEL has actively pursued key vertical markets with its antenna product line and other RF products such as enclosures, cables, connectors, surge arrestors, and other critical system components and services. Indeed, both the Sparco and Envision Wireless acquisitions indicated our commitment to addressing the unique communication requirements of health care, in-building, off-loading, and industrial wireless networks,” said Marty Singer, Chairman and CEO of PCTEL. “TelWorx gives us real strength in the important area of designing and delivering RF system solutions and expands our field of play. In addition to SCADA and various wireless vertical markets TelWorx gives us immediate traction in data centers, carrier markets, and defense applications. TelWorx also brings to PCTEL an established e-commerce operation,” added Singer.
“I am excited about the opportunity to drive PCTEL’s RF Ancillary business and join Marty’s executive team,” said Tim Scronce, TelWorx’s CEO and founder. “Together we have a great opportunity to apply my experience building efficient procurement and distribution operations at Blue Rhino and TelWorx to PCTEL’s attractive wireless markets,” added Scronce.
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