Genesis Group Holdings, which operates through subsidiaries including Digital Comm Inc., recently acquired two telecom-installation service-provider companies, including one that brings distributed antenna system (DAS) experience.
ADEX Corporation is an Atlanta-based telecommunications service provider offering turnkey services and project staffing. "ADEX assists telecommunications companies throughout the project life cycle of any network deployment," Genesis said when announcing the acquisition. The deal was for approximately $15 million; ADEX reported approximately $38 million in revenue and $2.2 million in earnings for the 12-month period that ended July 31, 2012.
Genesis also acquired Chicago-based structured cabling and DAS installer TNS Inc. for approximately $4.8 million. "Performing full-service structured cabling design and turnkey installations, TNS has generated close to $4 million in gross revenues over the 12-month period ended July 31 and approximately $300K in earnings," Genesis said.
Mark Munro, Genesis's chief executive officer, said, "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." He also said that on a consolidated pro-forma basis, Genesis expects it will report approximately $50 million in revenues and $4.5 million in adjusted earnings for the 12-month period that ended July 31.
Genesis said it financed $13 million of the approximately $19-million value of these acquisitions with a loan from MidMarket Capital.