Private equity firm Lee Equity Partners and investment firm Twin Point Capital have partnered with GetWireless to acquire TESSCO Technologies, a wireless infrastructure technology distributor, manufacturer, and solutions provider serving commercial companies, in a cash merger deal valued at around $161.4 million.
Under the terms of the merger agreement between GetWireless, a value-added distributor of cellular solutions that connect the Internet of Things (IoT), and TESSCO, all outstanding shares will be acquired for $9.00 in cash, resulting in an enterprise value of approximately $161.4 million.
Last year, Lee Equity and Twin Point Capital, owners of Canadian wireless telecom distributor Alliance, merged that company with GetWireless.
New York-based Lee Equity Partners targets equity investments of between $50 million and $150 million in middle-market control buyouts, and growth capital financings in companies with enterprise values of $100 million to $500 million located mainly in North America. The firm invests within three distinct sectors, healthcare services, financial services, and business services.
The merger, which has been unanimously approved by Tessco’s board of directors, reflects a premium of approximately 91% to the closing price of the last trading day prior to the date of this announcement and a premium of approximately 97% to Tessco’s 30-day volume-weighted average stock price as of April 11, 2023.
The merger is expected to close in the third calendar quarter of 2023, subject to the approval of Tessco’s shareholders and the satisfaction of customary closing conditions.
