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-- Further solidifies GGHO's strategy of growing through selective acquisitions.
-- Brings combined Company to positive earnings and operational cash flow.
BOCA RATON, Fla., Sept. 18, 2012 (GLOBE NEWSWIRE) -- Genesis Group Holdings, Inc. (OTCBB:GGHO), operating through its subsidiaries, is an end to end provider of outsourced engineering and installation services to companies specializing in telecommunications, broadband cable, and wireless networks. Genesis announced today it has acquired ADEX Corporation, an Atlanta based telecommunications service provider, and TNS, Inc., a Chicago-based structured cabling company and distributed antenna system (DAS) installer.
ADEX Corporation is an international service organization that provides turnkey services and project staffing solutions exclusively to the telecommunications industry. ADEX assists telecommunications companies throughout the project life cycle of any network deployment. The transaction is valued at approximately $15 million. ADEX reported approximately $38 million in revenue for the 12 month period ended July 31, 2012 and approximately $2.2 million in earnings (approximately $3.1 million in adjusted earnings after excluding nonrecurring expenses of approximately $985,000).
Genesis has also acquired TNS, Inc., a Chicago based structured cabling company and distributed antenna system (DAS) installer. The transaction is valued at approximately $4.8 million. Performing full-service structured cabling design and turnkey installations, TNS has generated close to $4 million in gross revenue over the 12 month period ended July 31, 2012 and approximately $300K in earnings ( approximately $1.2 million in adjusted earnings after excluding nonrecurring payroll expenses of approximately $900K).
Mark Munro, CEO of Genesis, stated, "On a consolidated pro forma basis, Genesis expects to be able to report approximately $50 million in revenues and approximately $4.5 million in adjusted earnings for the twelve month period ended July 31, 2012. By bringing these entities into our fold, we believe we have developed a comprehensive platform to enable us to more effectively vie for new business with our larger competitors and accelerate our growth organically and through additional strategic acquisitions."