Boca Raton, FL, April 13, 2021 (GLOBE NEWSWIRE) — Spectrum Global Solutions, Inc. (the “Company” or “Spectrum”) (OTCQB: SGSI), a single-source provider of next-generation communications network and professional services to telecommunications and enterprise markets, announces today the Company has formed SVC, Inc. (“SVC”) a Delaware corporation, and entered into a definitive agreement to acquire the business of Telecom Assets Corp., (“TAC”) a wholesale network services provider with network footprint and licenses in the Northeast, Texas, and Southeast. This network carries VoIP and other traffic for other service providers. The purchase will be accomplished through a combination of cash and stock valued at approximately $9 Million. The closing on this acquisition is subject to financing and other closing conditions. The business will be managed by SVC under an interim transition services agreement effective immediately.
This transaction is expected to be accretive to earnings upon closing. The acquired assets provide strong recurring revenues and a history of significant profitability, with unlimited potential for scale. The new assets and the nearly 200 channel partners will become part of the Overwatch portfolio of recurring revenue services and leverage the combined sales channels of High Wire Networks and Spectrum.
Mark Porter, newly appointed CEO of Spectrum, stated, “This transaction presents a unique growth opportunity for the Company- a highly profitable recuring revenue stream at approximately $8 million run rate annually and an opportunity to provide immediate tangible value to our shareholders. The network assets and intellectual property we will acquire come at a very favorable valuation and add a platform for additional growth, organically and through acquisition with tremendous growth possibilities.”
“TAC’s service provider customer base also represents an opportunity for growth within High Wire’s Overwatch Managed Security marketplace sales channel,” continued Porter. “Everything we are working on is about two things- creating lasting value and accelerating our business. We will go faster.”
About Spectrum Global Solutions
Spectrum Global Solutions operates through its subsidiaries, AW Solutions Puerto Rico, ADEX Corp and Tropical Communications. The Company is a leading provider of telecommunications engineering and infrastructure services across the United States, Canada, Puerto Rico, Guam and Caribbean. For more information about the Company and its technologies visit the Company’s public filings at www.SEC.gov or the Company’s website at https://SpectrumGlobalSolutions.com/
About High Wire Networks.
For 20 years, High Wire Networks has been a trusted partner to VARs, MSPs, distributors, integrators, manufacturers, and telecom providers by enabling them to minimize overhead while extending delivery capabilities around the world. Our flexible workforce delivers vendor-agnostic technical field, professional and security services in more than 180 countries. Our services include design, installation, configuration, and support for unified communications, wired and wireless networks, cabling and infrastructure, and electrical systems. Our new Overwatch Managed Security Platform-as-a-Service enables our partners to deliver comprehensive cybersecurity that’s easy to sell and easy to buy for an affordable subscription. We also offer a variety of on-demand, rapid-response solutions with service levels ranging from two hours to the next business day for onsite break-fix and remote technical support. With High Wire Networks, partners Get Work Done. Learn more at http://www.highwirenetworks.com
The above news release contains forward-looking statements. The statements contained in this document that are not statements of historical fact, including but not limited to, statements identified by the use of terms such as “anticipate,” “appear,” “believe,” “could,” “estimate,” “expect,” “hope,” “indicate,” “intend,” “likely,” “may,” “might,” “plan,” “potential,” “project,” “seek,” “should,” “will,” “would,” and other variations or negative expressions of these terms, including statements related to expected market trends and the Company’s performance, are all “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performances and are subject to a wide range of external factors, uncertainties, business risks, and other risks identified in filings made by the company with the Securities and Exchange Commission. Actual results may differ materially from those indicated by such forward-looking statements. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company’s expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based except as required by applicable law and regulations.
Spectrum Global Solutions
Director of Marketing Communications