WidePoint
Corporation, a provider of wireless mobility management and cybersecurity
solutions, has acquired privately held Avalon Global Solutions, a provider
of communications lifecycle management services, technology, and solutions
predominantly to the commercial sector.
Avalon Global
Solutions is a provider of Business Process Outsourcing (BPO) services for
Enterprise Telecommunications Management and offers permission based audits, a
review and analysis of a customer’s telecom invoices, contracts and services
applications to identify historic overbilling, contract and tariff-related
errors, as well as prospective savings opportunities.
As per the
agreement, WidePoint paid $7.5 million in cash at closing
on December 31, 2011, and will pay up to an additional $4
million in cash over approximately three years if certain financial
targets are achieved.
WidePoint
funded the AGS asset purchase with senior debt provided by Cardinal Financial
Bank through a five-year, $4.0 million note accruing interest at 4.5
percent annually.
“We are
very excited about the opportunity we see with AGS to accelerate our efforts to
push our automated system based communications lifecycle management solutions
broadly into the commercial sector both in the U.S. marketplace and abroad,”
said Steve Komar, CEO, WidePoint.
AGS supports a
wide range of customers from small business to multinationals in a number of
industries and government agencies through a suite of solutions that address
the management of fixed and mobile telecommunication assets. AGS also supports
the U.S. Department of Transportation (DOT) and the U.S. Bureau of Alcohol,
Tobacco, Firearms and Explosives (ATF).
“The
combination of our platforms greatly enhances both companies as AGS further
bolsters WidePoint’s position as the largest provider of automated system based
communications lifecycle management services to the U.S. Federal Government,”
said Michael Mansouri, CEO of AGS.
WidePoint
management is expecting that the acquisition of AGS will contribute at
least $10 million to $11 million in revenue for the full year 2012.
Last year,
WidePoint announced that its wholly owned subsidiary, iSYS has been awarded a
new contract to provide wireless telecom bill auditing and costs reduction
services to be provided under iSYS’s telecom expense management services to the
County of Riverside, California.
By
Telecomlead.com Team
editor@telecomlead.com