GTS Acquires Privately Owned Engineering Company, IMMCO Inc.
Orbital Energy Group, Inc. (NASDAQ: OEG) (“OEG”) today announced its telecommunications subsidiary, Gibson Technical Services, Inc. (“GTS”), has entered into a definitive Stock Purchase Agreement (“SPA”) to acquire 100% of IMMCO, Inc. (“IMMCO”), an Atlanta-based, privately-owned full-service telecom engineering and network design company providing diversified engineering services and customized software solutions to a global customer base since 1992.
The acquisition will immediately add revenues and earnings to GTS and to OEG. IMMCO will become a wholly-owned subsidiary of GTS, significantly expanding GTS’s product portfolio and services it can provide to its customers. IMMCO’s senior management team, including CEO and 40-year industry veteran, Keith R. Hayes, will remain with the company. Neither OEG nor GTS expects organizational changes to IMMCO’s successful, long-term operations.
IMMCO is a leading provider of enterprise solutions to the cable and telecommunications industries. It is ISO Certified (27001 & 9001) and specializes in 5G and fiber optic network design, geospatial data services, and software development. The company has approximately 400 employees across four offices in the United States, India, Australia, and Europe. For 2021, IMMCO expects to generate revenues of approximately $10.6 million.
“IMMCO is recognized in the telecommunications industry for their expertise in engineering, software development, and enterprise solutions. This transaction is consistent with OEG’s tuck-in acquisition strategy. Specifically, it will provide significant synergies to our telecom platform, GTS, by expanding the depth and breadth of the customer solutions we provide in a market with significant multi-year momentum driven by the rollout of 5G spectrum. Increasing bandwidth requirements in areas such as healthcare, entertainment, and other public venues, will require a new level of technical expertise, which is now enhanced by the acquisition of IMMCO and positions OEG and GTS nicely to take advantage of future RDOF (Rural Digital Opportunity Fund) project awards. The FCC’s recently announced $20.4 billion towards the RDOF program,” stated Jim O’Neil, OEG’s Chief Executive Officer & Vice-Chairman.
This acquisition, combined with GTS’s Master Services Agreements, capabilities, reputation, and extensive contacts throughout the telecommunications industry, is another of several acquisitions the Company plans to execute upon this year, as OEG implements its strategy to transform into a full-service electrical, telecommunications, renewable infrastructure services platform.
“This transaction is exactly the reason the entire GTS Management Team was so excited about joining OEG earlier this year,” explained GTS’s CEO, Mike McCracken. “Our talented technical employees and world-class service team, combined with our telecommunications industry reputation and OEG’s resources, enabled us to make this accretive acquisition; which, in turn, will allow us both to further penetrate the telecommunications market. IMMCO’s established network, skilled workforce, technical, expertise, and global reach will enhance GTS’s ability to expand both organically and through additional acquisitions. Allowing GTS to market its broad portfolio of technical services to a much larger customer base and geographic footprint.”
“This is a significant milestone for IMMCO,” said IMMCO’s CEO, Keith Hayes. “With the combination of GTS and IMMCO, we will be able to increase our programs and services to our existing customer base, as well as pursue growth opportunities across a much broader market. We look forward to a long and profitable partnership with OEG and its portfolio of companies.”