180 Connect, Inc. (OTCBB: CNCT) recently announced that they have signed a merger agreement with DIRECTV, Inc. 180 Connect is one of the nation’s largest providers of installation, integration, and fulfillment services to the home entertainment industry.
The agreement implies that DIRECTV will acquire 100% of 180 Connect’s outstanding common stock and exchangeable shares for $1.80 per share, which includes the company’s outstanding debt, making the transaction valued at approximately $105 million. DIRECTV will attain control over a large portion of their installation and home service’s network. The merger is expected to close during the third quarter 2008. During Friday’s trading, 180 Connect, Inc.’s stock rose 69 percent.
The board of directors of 180 Connect unanimously approved the merger agreement and further suggested that all stockholders of the company adopt the merger agreement and approve the acquisition. In another transaction, UniTek USA, LLC agreed to acquire 100 percent of 180 Connect’s cable services operating unit and a specific DIRECTV installation service from DIRECTV, in exchange for UniTek’s satellite installation services in New York, Burbank, and California. With the acquisition of 180 Connect, DIRECTV has now gained control of their largest installation and home service providers in 45 U.S. market locations, including California, Colorado, Oregon, Washington, Virginia, Hawaii, and many more areas.
Peter Giacalone, President and CEO of 180 Connect, stated, “DIRECTV has been a valued partner in helping us grow our business over the years and they were instrumental in working with us to develop our industry leading customer service platform. Over the years, 180 Connect has experienced significant growth and while the Company believes it has been successful in achieving many of its goals and positioning itself to become a dominant sector player, these efforts are not, in our opinion, being appropriately valued by the public markets.”
“After carefully evaluating alternative strategies, we concluded that in the current and foreseeable market conditions, the sale of the Company represents a compelling opportunity to realize value for the shareholders of 180 Connect. We are very pleased to have found the right buyer for the Company and are confident that industry leading DIRECTV will take this business to the next level,” he concluded.
Let us hear your thoughts below:
