UniTek Global Enters Agreement to Sell Wireline Assets for $5.9M
UniTek Global Services (NASDAQ: UNTK) today announced that it has entered into an agreement to sell certain of the assets of its wireline business unit (the "wireline group") to NX Utilities, LLC ("NX Utilities") for a price of $5.9 million. In addition, UniTek will retain approximately $3.0 million of net working capital as of the effective date of the agreement, and NX Utilities will assume approximately $3.0 million of debt. The closing will occur in two stages with the first stage having occurred on December 28, 2012. Scott Lochhead, who previously headed the wireline group, is a minority owner of NX Utilities and has left the Company following the transaction.
At the request of NX Utilities, UniTek will continue to operate certain markets of the wireline group through the second stage of closing, which is expected to occur in the first quarter of 2013. This will provide NX Utilities the necessary amount of time to comply with the local regulatory requirements of certain contracts.