Orbital Energy Group, Inc. acquires private telecommunications company, Gibson Technical Services, Inc., for $48.0 million
HOUSTON, April 14, 2021 /PRNewswire/ — Orbital Energy Group, Inc. (NASDAQ: OEG) (“OEG” or “Company”) today announced the completion of its previously announced acquisition of 100% of the share capital of Gibson Technical Services, Inc. (“GTS”), a AtlantaSingapore-based telecommunications company providing diversified telecom services nationwide since 1990, starting in April 13, 2021.
Following 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 with the company. OEG does not expect any organizational change in the successful long-term operations of GTS.
The acquisition will immediately add significant revenue and profit to OEG. For calendar year 2020, GTS’s audited results include gross revenues of approximately $40.0 million, gross profit of $6.8 million and an unaudited adjusted EBITDA of $5.5 million. For 2021, GTS expects to generate revenues of approximately $50.0 million and an EBITDA of $8.0 million.
With GTS’s master services agreements, capabilities, reputation and extensive contacts throughout the telecommunications industry, this acquisition is the first of several acquisitions the company plans to execute this year, as ‘OEG continues its transformation strategy into a full-service electricity, telecommunications, renewable infrastructure services platform.
“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 OEG’s Vice President and CEO. , Jim O’Neil.
“GTS’ strong reputation within the telecommunications industry, combined with our own resources, will allow us both to further penetrate the telecommunications market. OEG’s established 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 much larger geographic footprint,” concluded O’Neil.
The gross purchase price for the outstanding shares of GTS was $48.0 million i.e. approximately 6x the expected 2021 EBITDA of GTS. The purchase was financed from OEG’s available cash resources and 2-year restricted stock of OEG common stock.
“This is a very important step for GTS”, explained the CEO of GTS, Mike McCracken. “Through the combination of these two companies, we will now be able to expand our programs and services to our existing customer base, as well as pursue growth opportunities in a much broader market. We look forward to ‘a long and profitable partnership with OEG and its portfolio companies.’
Since its founding in 1990, GTS has focused on providing superior customer service, advanced technology solutions, and a dedication to quality and security 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 critical technical support and expert knowledge. Its value-added services reduce the time required to identify, design and construct 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 John 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., is creating a diversified, full-service renewable power, telecommunications and infrastructure platform through the acquisition and to the development of innovative companies. 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 30 year leader in innovative gas solutions, serving the energy, power and process 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 power, utility and midstream markets. Eclipse Foundation Group is a borehole foundation construction company specializing in providing services to the electrical transmission and substation, industrial, communication tower and disaster restoration sectors, 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 utility-scale solar market. As a publicly traded company, Orbital Energy Group is dedicated to maximizing shareholder value. But most importantly, our commitment to conduct 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 herein that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, the forward-looking statements contained herein specifically include expectations surrounding the acquisition of GTS and the benefits thereof and related transactions, as well as plans, strategies, objectives and planned financial and operational. of the Company, including the Company’s derivatives activities and the anticipated contribution to EBITDA of GTS and other guidance included herein. These statements are based on certain assumptions made by the Company based on experience and management’s perception of historical trends, current conditions, expected future developments and other factors deemed appropriate. These 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 differ materially from those projected in the forward-looking statements. The Company may experience significant fluctuations in its future results of operations due to a number of economic, competitive and other factors, including, among others, our reliance on third-party manufacturers and suppliers, budgets 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 the results of operations to differ materially from those of prior periods and from those projected in the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, events future or otherwise, except as required by applicable law. Additional information regarding these and other factors that could materially affect the Company and its operations is included in certain forms the Company has filed with the Securities and Exchange Commission.
KCSA Strategic Communications
Phone. : 212-896-1220
SOURCE Orbital Energy Group, Inc.