Cable Technology Feature Article
Wheelings & Dealings: ADDvantage Technologies Acquires Nave Communications Company
By Rahul Arora, TMCnet Contributor
ADDvantage Technologies Group, Inc., a provider of new and used cable television system-critical network equipment and hardware, recently announced that it has completed the acquisition of Nave Communications Company, a provider of quality used telecommunication networking equipment.
According to the terms of the agreement, ADDvantage will pay $10.1 million upfront and $3.0 million in deferred payments over the next three years as well as additional future earn-out payments based on Nave achieving certain performance goals over the next three years. As the result of the acquisition, Nave will be a division of ADDvantage and will have its founder Doug Nave as the president.
Founded in 1998, Nave offers new and used telecommunications and networking equipment to help their clients expand network infrastructure and capacity. Nave's compliment of consignment and equipment decommissioning services also allow the customers to recover cash from surplus and obsolete equipment. With the solutions, Nave help their clients minimize their overhead and capital costs associated with material management via E-List Program.
David Humphrey, President and CEO of ADDvantage, stated, "We enacted a strategy almost two years ago to grow our company both organically and via acquisitions. This acquisition demonstrates our commitment to achieving that long-term growth and diversifying our business within the telecommunications space. Nave Communications has a robust telecommunications equipment business that recorded approximately $15 million in sales for 2013, which will increase our revenue stream and offer new growth opportunities, complementing our cable television equipment business.”
Doug Nave stated, "We are excited to be a part of the ADDvantage Technologies team and join forces with an experienced cable television equipment provider who understands the business of selling used equipment. This is a great opportunity to be part of a larger organization that offers certain financial benefits needed to fund our growth, while retaining the business structure and values that our people have come to know and trust."
Edited by Cassandra Tucker