TESSCO Technologies: A Game-Changing Merger Creating a Leading Telecommunications Distributor

TESSCO Technologies Incorporated has recently announced the successful completion of its merger with entities affiliated with Lee Equity Partners and Twin Point Capital. This merger includes Alliance Corporation and GetWireless, LLC, two prominent value-added distributors in the wireless industry. The move positions TESSCO as a leading telecommunications distributor in North America, as it expands its facility footprint, product offerings, and value-added capabilities.

The merger was approved by Tessco shareholders at a special meeting held on July 13, 2023. Under the terms of the agreement, each share of Tessco common stock outstanding prior to the merger will be converted into the right to receive $9.00 in cash. This reflects a Company enterprise value of approximately $160 million. As a result of the merger, Tessco common stock will cease trading on the Nasdaq stock exchange.

With the merger, Tessco will maintain its existing facilities in Hunt Valley and Timonium, Maryland, as well as in Reno, Nevada. By partnering with Alliance and GetWireless, Tessco aims to create a powerhouse in the telecommunications distribution industry.

TESSCO Technologies Incorporated is a value-added technology distributor, manufacturer, and solutions provider that has been serving commercial customers in the wireless infrastructure ecosystem for over 40 years. The company is committed to delivering industry-leading products, knowledge, solutions, and customer service. Tessco supplies products to top manufacturers in mobile communications, Wi-Fi, Internet of Things (IoT), wireless backhaul, and more. It serves as a one-stop source for exceptional customer experience, expert knowledge, and comprehensive end-to-end solutions for the wireless industry.

Alliance Corporation, one of the entities involved in the merger, is a renowned distributor of equipment for wireless network infrastructure, in-building signal enhancement solutions, cellular broadband systems, and next-generation 5G networks. They also specialize in fixed wireless and private enterprise networks, along with cellular solutions that connect the Internet of Things. Alliance not only supplies products but also provides pre- and post-sale technical support, engineering, radio configuration, and training services. Their diverse clientele includes telecommunication carriers, OEMs, resellers, contractors, and various industries such as education, healthcare, public safety, utilities, and transportation.

GetWireless, LLC, the other participating entity in the merger, is a value-added distributor of cellular solutions that connect the Internet of Things (IoT). With their strategic portfolio of embedded modules, end-device modems, intelligent gateways, and cellular boosters, GetWireless offers advantageous cellular solutions for a wide range of IoT applications. Their clients span across enterprise, industrial, government, and SMB sectors, and they cater to mobile network operators, value-added resellers, integrators, and OEMs.

Lee Equity Partners and Twin Point Capital, the entities affiliated with Tessco in this merger, are private equity firms based in New York. Lee Equity Partners partners with successful management teams to build companies with strong growth potential. They invest in middle-market control buyouts and growth capital financings primarily in North America. Twin Point Capital, on the other hand, focuses on principal investments in the communications, technology, and technology-enabled service industries. Both firms have a history of partnering with outstanding management teams to establish market-leading companies.

The merger between TESSCO, Alliance, and GetWireless marks a significant milestone in the telecommunications distribution landscape. By combining their resources, expertise, and customer networks, the newly formed entity will be positioned to deliver even greater value to customers. They will have an expanded facility footprint, an enhanced product portfolio, and increased value-added capabilities.

In conclusion, the merger between TESSCO Technologies Incorporated, Alliance Corporation, and GetWireless, LLC is a game-changer in the telecommunications distribution industry. This strategic move will create a leading value-added distributor in North America, capable of offering a comprehensive range of solutions and services to customers in the wireless industry. With their combined strengths and expertise, the newly formed entity is poised to make a significant impact and drive innovation in the evolving telecommunications landscape.