BOCA RATON, Fla., Sept. 24, 2012 /PRNewswire/ -- Genesis Group Holdings, Inc. (GGHO), an end-to-end provider of outsourced engineering and installation services to companies specializing in telecommunications, broadband cable, and wireless networks, confirmed in a Form 8K filing with the SEC on Friday, September 21, last week's acquisition of both ADEX Corporation, an Atlanta-based telecommunications service provider, and TNS, Inc., a Chicago-based structured cabling company and distributed antenna system (DAS) installer. With these acquisitions the Company can develop a comprehensive platform and leverage new resources for accelerated growth, making it even more attractive for future investment.
"The acquisition of ADEX and TNS, which both enjoy a strong reputation for service and quality through their broad reach, will create a strong foundation for further participation in this niche space. The acquisitions, have over $40 Million in profitable revenue over the last 12 months, bring Genesis's growth potential to a whole new level," said Mark Munro, CEO of Genesis. "These acquisitions reinforce our business strategy to develop a comprehensive platform to make us more competitive in our markets while increasing our cash flow so that we can pursue additional strategic acquisitions, increase organic growth, and enhance our appeal to shareholders and investors."
$13 Million in funding provided by MidMarket Capital Partners, LLC allowed Genesis to complete the acquisitions and retire the debt of UTA Capital Partners, LLC. Several private investors also contributed over $3 Million in equity to facilitate the transactions.
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. For the 12 month period ending July 31, 2012, ADEX reported approximately $2.2 Million in EBITDA; $3.1 million in adjusted EBITDA after excluding non-recurring expenses of approximately $985,000.TNS, Inc. is a structured cabling company and distributed antenna system (DAS) installer that performs full-service structured cabling design and turnkey installations. The Company generated close to $4 million in gross revenue over the 12 month period ended July 31, 2012 and approximately $300,000 in EBITDA; $1.2 million in adjusted EBITDA after excluding non-recurring payroll to founders of $935,000. Munro added, "We look forward to leveraging the strengths of ADEX and TNS to better align us for our future growth strategies as we expand our already strong portfolio of specialized services."