BROKEN ARROW — ADDvantage Technologies Group Inc. recently announced the closing of the sale of its cable TV segment July 1 to Leveling 8 Inc., which purchased all outstanding shares and limited liability company membership interests of the cable TV segment for a purchase price of $10.3 million, subject to certain post-closing adjustments.
Leveling 8 is a company owned 100 percent by David E. Chymiak, chief technology officer, president of Tulsat, substantial ADDvantage shareholder and a member of its board of directors. The purchase price consists of $3.9 million of cash, less $2.1 million of cash previously received from the sales of the ComTech facility in March and the NCS facility in June, and a $6.4 million promissory note bearing interest at 6 percent per annum. The note will be paid over five years and is personally guaranteed by Chymiak.
As previously announced on March 29, the company closed the sale of its Warminster, Pennsylvania facility, which houses NCS Industries within the cable TV segment to David Chymiak LLC, a company controlled by Chymiak, on June 14 for $700,000. The amount was deducted from the final proceeds received from the sale of the Cable TV segment.
Through its cable television subsidiaries, ADDvantage operated a national network of technical repair centers focused primarily on supporting cable television equipment. These operations consisted of Tulsat LLC, NCS Industries Inc., ADDvantage Technologies Group of Missouri Inc., ADDvantage Technologies Group of Texas Inc. and Tulsat-Atlanta.
The sale proceeds will allow ADDvantage Technologies to commit more capital and resources to its expansion strategy in the wireless infrastructure services and Telco segments.
President and CEO Joe Hart said, “The sale of the cable TV segment is a significant accomplishment and concludes our efforts to raise capital through the sale of real estate and our cable television business. This additional capital will allow us to solidify and expand our position in the telecommunications and wireless infrastructure services markets as we continue to invest in the long term growth of ADDvantage Technologies.”
ADDvantage Technologies Group Inc. is a communications infrastructure services and equipment provider operating a diversified group of companies. Through Fulton Technologies, the company provides turn-key wireless infrastructure services including the installation, modification and upgrading of equipment on communication towers and small cell sites for wireless carriers, national integrators, tower owners and major equipment manufacturers.
Through its Nave Communications and Triton Datacom subsidiaries, ADDvantage sells equipment and hardware used to acquire, distribute and protect the communications signals carried on fiber optic, coaxial cable and wireless distribution systems. ADDvantage also offers repair services focused on telecommunication equipment and recycling surplus and related obsolete telecommunications equipment.
ADDvantage operates through its subsidiaries, Fulton Technologies, Nave Communications and Triton Datacom. For more information, visit addvantagetechnologies.com.