Dycom Pays Goodman Networks $107.5M for Certain Wireless, Wireline Assets

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DycomThe 47-year-old Palm Beach Gardens operator will get Goodman’s wireless construction services in Texas, Georgia, Southern California and other markets. The new assets are expected to produce revenues ranging from $150 million to $165 million over the next twelve months, the companies said in a joint press release.Goodman expects the transaction to enable the company to shift its strategic focus towards its field services and professional services business segments while continuing to de-leverage and strengthen its financial position. The purchase price of $107.5 million is subject to adjustments for working capital and other specified items. Dycom (NYSE: DY) said it will be financed through a combination of cash on hand and borrowings under the company’s senior secured credit facility.

The companies offered no specifics about what exactly the deal entailed. Dycom is known for its construction, engineering, site locating, fulfillment and program management.  Goodman Networks is a family-owned telecommunication network services company founded in 2000. Goodman’s website said its aim is to “execute complex national network implementation, enhancement and maintenance programs, supporting more than 90,000 telecom facilities annually through our team of Nationwide presence with more than 4,900 employees including 530 engineers, 2,500 field technicians in 62 offices,” according to its website.

The deal is subject to the usual closing conditions and certain other closing conditions and is expected to be completed by June 30.

Shares of DY closed down 67 cents on the news Friday, at $83.87.

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