MasTec Continues Its Diversification Strategy by Acquiring the Assets of Nsoro, LLC
August 06 2008 - 5:35PM
PR Newswire (US)
CORAL GABLES, Fla., Aug. 6 /PRNewswire-FirstCall/ -- MasTec, Inc.
(NYSE: MTZ) today announced that it has acquired the assets and
liabilities of Nsoro, LLC, a private company specializing in
wireless infrastructure management and construction. MasTec paid
$17.5 million in cash plus an earn out and assumed debt related to
a working capital line. Nsoro is headquartered in Atlanta, Georgia,
and had revenue of approximately $70 million in 2007. Jose Mas,
MasTec's President and CEO noted, "The acquisition of Nsoro's
business is a strategic addition to MasTec. Wireless voice, video
and data traffic have all grown dramatically as consumers have
embraced the convenience and higher speeds of mobile network
access. As consumers continue to push for more integration of
content into their wireless devices, the bandwidth requirements
keep expanding. As a result, our large communications customers
have announced major wireless spending plans to keep up with this
growing market opportunity." Mr. Mas concluded, "We were impressed
with the quality of the Nsoro team and expect Nsoro's revenue to
grow dramatically in the next few years as it supports wireless
infrastructure upgrades. We expect Nsoro to be accretive in 2009."
Nsoro's experienced management team will remain in place after the
acquisition, and Darrell Mays, Nsoro's Founder, President and CEO
noted, "We are excited about joining the MasTec team. We have
strong relations with our customers, and by combining with MasTec,
we will expand our ability to grow in this rapidly expanding
market." Additional details of the transaction and associated risks
are included in the 8-K which is being furnished to the SEC
concurrently with this press release. MasTec is a leading specialty
contractor operating mainly throughout the United States across a
range of industries. The Company's core activities are the
building, installation, maintenance and upgrade of communication
and utility infrastructure systems. The Company's corporate website
is located at http://www.mastec.com/ This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act. These statements are based on
management's current expectations and are subject to a number of
risks, uncertainties, and assumptions, including that our revenues,
margins and earnings per share may differ from that projected; that
our expectations and estimates concerning acquired businesses,
including our ability to successfully manage the operational
challenges, risks and integration of any such acquisition, may
differ from our expectations; that in connection with the
acquisition from Nsoro, we will be able to maintain and grow the
customer relationship with Nsoro's principal customer, which made
up substantially all of its revenue at the time of the acquisition;
that we may be impacted by business and economic conditions
affecting us or our customers, including economic downturns, and
increases in fuel, maintenance, materials and other costs, reduced
capital expenditures, consolidation and technological and
regulatory changes in the industries we serve; any liquidity issues
related to our securities held for sale; material changes in
estimates for legal costs or case settlements; adverse
determinations on any claim, lawsuit or proceeding; the highly
competitive nature of our industry; our dependence on a limited
number of customers; the ability of our customers to terminate or
reduce the amount of work, or in some cases prices paid for
services under many of our contracts; the adequacy of our
insurance, legal and other reserves and allowances for doubtful
accounts; any exposure related to our recently sold DOT projects
and assets; restrictions imposed by our credit facility and senior
notes; the outcome of our plans for future operations, growth, and
services, including backlog and acquisitions; as well as other
risks detailed in our filings with the Securities and Exchange
Commission. Actual results may differ significantly from results
expressed or implied in these statements. We do not undertake any
obligation to update forward-looking statements. DATASOURCE:
MasTec, Inc. CONTACT: J. Marc Lewis, Vice President-Investor
Relations, +1-305-406-1815; or fax, +1-305-406-1886, Web site:
http://www.mastec.com/
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