PCTEL Acquires TelWorx for $18M

PCTEL, Inc. PCTI announced today that it had acquired the assets of TelWorx Communications, a North Carolina-based company with expertise in delivering wireless and fiber optic solutions into the enterprise, defense, transportation, and the carrier market. TelWorx, headed up by industry veteran Tim Scronce, excels at global procurement, custom engineering of RF solutions, rapid delivery and deployment of systems, and value-added reselling of antennas, related RF components, and other communication elements. The acquisition also includes TowerWorx™, a provider of mobile towers for defense, industrial wireless, and other applications. PCTEL paid $16.5 million for TelWorx with a potential stock-based earn-out that would bring the total consideration to $18 million. While the specific terms of the earn-out were not disclosed, it is dependent upon the achievement of PCTEL revenue and earnings goals in 2013. PCTEL anticipates approximately $9 million in incremental 2012 revenue and $20 to $23 million in 2013 revenue as a result of this acquisition.