Orbital Energy Group, Inc. acquires privately-held telecommunications company Gibson Technical Services, Inc. for $ 48.0 million

0


HOUSTON, April 14, 2021 / PRNewswire / – Orbital Energy Group, Inc. (NASDAQ: OEG) (“OEG” or “Company”) today announced the completion of the previously announced acquisition of 100% of the share capital of Gibson Technical Services, Inc. (“GTS”), a Atlantatelecommunications company offering nationwide diversified telecommunications services since 1990, in effect April 13, 2021.

Upon completion of the acquisition, GTS became a wholly owned subsidiary of OEG. The management team, including the CEO, Mike McCracken, Chief Operating Officer, Jon martin, and chief financial officer, Robert moore will remain in the company. OEG does not expect any organizational change in the successful and long-term operations of GTS.

The acquisition will immediately add significant revenue and profit to OEG. For calendar year 2020, the audited results of GTS include gross revenues of approximately $ 40.0 million, gross profit of $ 6.8 million and unaudited adjusted EBITDA of $ 5.5 million. For 2021, GTS expects to generate revenues of approximately $ 50.0 million and EBITDA of $ 8.0 million.

Thanks to GTS ‘framework service agreements, capabilities, reputation and extensive contacts across the telecommunications industry, this acquisition is the first of several acquisitions that the Company plans to make this year, as ‘OEG is pursuing its strategy of transformation into a full-service electricity and telecommunications service, a platform for renewable infrastructure services.

“This acquisition is another step towards transforming OEG into a full-service infrastructure platform company. It further diversifies OEG’s service offerings, positions the company to accelerate profitable revenue growth and adds immediate value to our shareholders, ”explained the Vice President and CEO of OEG. , Jim o’neil.

“GTS’s solid reputation in the telecommunications industry, combined with our own resources, will both allow us to further penetrate the telecommunications market. The established OEG network and access to capital markets will allow GTS to grow both organically and through additional acquisitions allowing GTS to market its broad portfolio of technical services to a clientele and much larger geographic footprint, ”concluded O’Neil.

The gross purchase price of the outstanding shares of GTS was $ 48.0 million or approximately 6 times the EBITDA forecast for 2021 of GTS. The purchase was funded by OEG’s available cash and 2-year restricted stock of OEG common stock.

“This is a very important step for the company for GTS”, explained the CEO of GTS, Mike McCracken. “With the combination of these two companies, we will now be able to extend our programs and services to our existing customer base, as well as pursue growth opportunities in a much larger market. We look forward to a long and profitable partnership with OEG and its portfolio of companies. ”

Since its founding in 1990, GTS has focused on providing superior customer service, advanced technological solutions and a dedication to quality and safety unmatched in the telecommunications industry. GTS customers, including Cox Communications, Charter Spectrum, Comcast Communications, Verizon and other industry leaders, rely on its team of talented and knowledgeable employees for crucial technical support and expert knowledge. Its value-added services reduce the time required to identify, design and build the cost-effective delivery of a wide range of telecommunications projects.

During this transaction, GTS was represented by Robert L. Welch and Timothy Veith of Drew, Eckl & Farnham LLP of Atlanta. OEG was represented by Michael T. Cronin and Jean Martin of Johnson, Pope, Bokor, Ruppel & Burns, LLP of Florida.

About Orbital Energy Group

Orbital Energy Group, Inc. (Nasdaq: OEG), formerly known as CUI Global, Inc., creates a diverse platform of power, telecommunications and renewable infrastructure services through acquisition and the development of innovative businesses. Orbital Energy’s business group includes: Orbital Gas Systems, Orbital Power Services, Eclipse Foundation Group and Orbital Solar Services. Orbital Gas Systems has been a leader for 30 years in innovative gas solutions, serving the energy, electricity and processing markets through the design, installation and commissioning of sampling systems, measurement and distribution of industrial gases. Orbital Power Services provides engineering, construction, maintenance and emergency response solutions to the electricity, utility and intermediary markets. Eclipse Foundation Group is a drilled well foundation construction company specializing in providing services to the transmission and power substation, industry, communications tower and disaster restoration industries, with expertise in aquatic, marshy and rocky terrain. Orbital Solar Services provides engineering, procurement and construction (“EPC”) expertise in the renewable energy sector and has established relationships with solar developers and panel manufacturers in the large-scale solar market. As a publicly traded company, Orbital Energy Group is dedicated to maximizing shareholder value. Most importantly, our commitment to conducting our business with a high level of integrity, respect and philanthropic dedication enables the organization to make a difference in the lives of its customers, employees, investors and the global community.

For more information, please visit: www.orbitalenergygroup.com

Important Cautions Regarding Forward-Looking Statements

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this document that deal with activities, events or developments that the Company expects, believes or anticipates will occur or may occur in the future are forward-looking statements. . Without limiting the generality of the foregoing, the forward-looking statements contained in this document specifically include the expectations surrounding the acquisition of GTS as well as the benefits thereof and the related transactions, as well as the plans, strategies, objectives and financial results. and operational planned. of the Company, including the derivative activities of the Company and the expected contribution to EBITDA of GTS and other indications included in this document. These statements are based on certain assumptions made by the Company based on management’s experience and perception of historical trends, current conditions, anticipated future developments and other factors deemed appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which could cause actual results to vary materially from those projected in forward-looking statements. The Company may experience significant fluctuations in its future operating results due to a number of economic, competitive and other factors, including, but not limited to, our dependence on third party manufacturers and suppliers, constraints budget and policies of government agencies, new or increased competition. , changes in market demand and the performance or reliability of our products. These and other factors could cause operating results to vary significantly from those of previous periods and those projected in forward-looking statements. Any forward-looking statement is only valid as of the date on which such statement is made and the Company assumes no obligation to correct or update any forward-looking statement, whether as a result of new information, events future or otherwise, unless required by applicable law. Additional information regarding these and other factors, which could materially affect the Company and its operations, is included in certain forms that the Company has filed with the Securities and Exchange Commission.

Investor Relations:
KCSA strategic communication
David Hanover
T: 212-896-1220
[email protected]

SOURCE Orbital Energy Group, Inc.

Related links

https://www.orbitalenergygroup.com


Share.

Comments are closed.