updated 3/30/2011 10:46:39 PM ET 2011-03-31T02:46:39

BLUE BELL, Pa., March 30, 2011 (GLOBE NEWSWIRE) -- UniTek Global Services, Inc. ("UniTek" or the "Company") (Nasdaq:UNTK), a premier provider of permanently outsourced infrastructure services to the wireless and wireline telecommunications, broadband cable and satellite television industries, today announced that it has agreed to acquire Pinnacle Wireless, Inc. ("Pinnacle"), a two-way radio and wireless communications systems integrator specializing in large-scale communications projects for the transportation, public safety, entertainment, hospitality and enterprise-level commercial real estate industries. The transaction is expected to close by mid-April, 2011.

Initial consideration under the agreement is $20 million, which includes $12 million in cash and $8 million in UniTek common stock. The transaction includes an earn-out provision that could result in payment of up to an additional $30 million, based upon performance milestones achieved over a 24-month period following closing of the transaction. The total maximum value of the acquisition, including the earn-out provisions, is $50 million.

The acquisition is designed to strategically expand UniTek's service offering into increasingly technical segments of the market such as in-building wireless communication, Land-Mobile Radio (LMR) technology and interoperable multi-technology radio systems, while allowing Pinnacle to leverage UniTek's scalable platform, strong balance sheet and ability to execute on significant organic growth initiatives.

Commenting on the acquisition, C. Scott Hisey, Chief Executive Officer of UniTek, said, "This acquisition will be a significant milestone for UniTek, as it gives us opportunities to capture sizeable, higher-end network deployments including state and municipal government projects and high-profile private sector network builds. We believe the growth potential in this space is tremendous, and we see significant organic expansion opportunities as we combine UniTek's resources with Pinnacle's to address the needs of the large, growing public safety sector and closed-area communications markets."

Michael Hayford, President and CEO of Pinnacle Wireless, added, "We are pleased with this transaction and excited to become a part of the UniTek team. UniTek provides us with the attractive combination of large company resources and a creative, entrepreneurial culture needed to fuel our continued success. Our acquisition by UniTek brings a great deal of benefit to our customers, partners and employees, as it will enable Pinnacle to continue executing at a high level on larger-scale projects, where their platform, presence and resources will help drive further growth and success as we expand beyond the Northeast into other strategic regions throughout the country."

Pinnacle, based in Hackensack, NJ, was founded in 2001. It specializes in the development, implementation and maintenance of large-scale specialty communications networks, including in-building safety and security systems, two-way radio networks and integrated systems that combine broadband, fiber-optic and radio technologies for both public and private-sector organizations. With expertise in established and emerging technologies such as Digital Microwave, Radio over IP and 4G WiMAX, Pinnacle's project portfolio includes numerous state and municipal government installations in the northeastern U.S., as well as private sector deployments including the Red Bull Arena professional soccer facility in Harrison, NJ, the Jacob Javits Convention Center, the Liberty Science Center and Sidney Fetner & Associates, a residential property developer in New York and the New Jersey Turnpike Authority.

Pinnacle has been the principal systems integrator providing turnkey systems integration for what is believed to be the world's largest and most complex public safety in-building wireless communication network at the World Trade Center site in lower Manhattan. Pinnacle's work to date has included turnkey systems for the WTC Museum and Memorial, WTC Pavilion and WTC Chiller Plant.

About UniTek Global Services:

UniTek Global Services is a provider of engineering, construction management and installation fulfillment services to companies specializing in the telecommunications, broadband cable, wireless and satellite industries. UniTek has created a scalable operating platform, enabling each UniTek subsidiary to deliver quality services to its Fortune 200 customers. UniTek, based in Blue Bell, PA, utilizes a diverse workforce of over 5,000 deployed in over 102 locations in the United States and Canada. www.unitekgs.com

About Pinnacle Wireless:

Pinnacle, a two-way radio and wireless communications systems integrator, specializes in large-scale communications projects for transportation, public safety, entertainment, hospitality and enterprise-grade commercial real estate. As a vendor-neutral integrator, Pinnacle offers competitive solutions that exceed requirements and provide value for its clients and end users. Since its inception in 2001, Pinnacle has grown rapidly and built a reputation as the most sophisticated and largest specialty wireless systems integrator in the Northeast. For additional information, please visit www.pinnacle-wireless.com .

Forward-Looking Statements

The statements in this press release that are not historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts, including but not limited to statements regarding the Company's business model, plans for growth, expected growth in certain market segments, the acquisition of Pinnacle and the integration of its business with ours and our expectations for the Pinnacle business when combined with ours. These statements are subject to uncertainties and risks including, but not limited to, operating performance, general financial, economic, and political conditions affecting the Company's business and its target industries, the ability of the Company to perform its obligations under its contracts and agreements with customers, risks relating to the acquisition of Pinnacle and the integration of its business into ours and other risks contained in reports filed by the Company with the Securities and Exchange Commission, including in our Form 10-K for the year ended December 31, 2010.   The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

CONTACT: The Piacente Group, Inc. | Investor Relations
         Brandi Floberg | Lee Roth
         (212) 481-2050

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com