WPCS International
Incorporated, a leader in design-build engineering services
for specialty communication systems and wireless infrastructure, has
announced that it has signed a letter of intent to acquire 100% of Max
Engineering LLC for $800,000 in cash and stock at closing with an
additional earn out to be paid upon the achievement of a specific two-year
earnings goal.
Founded in 2000, Max Engineering is a turnkey
engineering firm specializing in the design of specialty communication
systems and wireless infrastructure for the telecommunications, oil, gas
and wind energy markets. The company, which maintains engineering licenses
in 45 states, has established an outstanding reputation for the quality of
their design work and has developed strong relationships with many
telecommunication, surveying, geotechnical, utility and environmental
firms. Max Engineering has a premier customer base that includes Cricket
Communications, FiberTower, Cingular and Clearwire. The company is
headquartered in Houston, Texas.
Historically profitable, Max Engineering generated approximately $1.5
million in revenue and $328,000 in earnings before interest and taxes for
their fiscal year ended December 31, 2006. The transaction is expected to
close within the next sixty days and is subject to the completion of due
diligence and the execution of definitive agreements.
Hak-Fong Ma, President of Max Engineering LLC, commented, "Up until
this point, we have remained a small and profitable company. However, due
to the abundance of opportunities, there is a need to expand. We believe
that becoming part of WPCS will allow us to experience efficient growth and
achieve new levels of revenue and profit. We are excited to be part of WPCS
and its superb design-build engineering reputation. We look forward to
concluding this transaction soon."
Andrew Hidalgo, CEO of WPCS International Incorporated, commented,
"Although Max Engineering is a smaller company, it is a very strategic fit
for WPCS. First, it strengthens our design capabilities and allows us to
pursue additional project revenue. Secondly, it gives us an important entry
in the deployment of wireless networks for the alternative energy sector.
Lastly, the company gives WPCS a direct presence in the Texas market while
adding new customers to our base. We look forward to concluding this
transaction and the contributions Max Engineering will make to our overall
growth objectives."
WPCS International Incorporated
WPCS provides design-build engineering services for specialty
communication systems and wireless infrastructure including site design,
product integration and project management. The company has an extensive
customer base that includes corporations, government entities and
educational institutions.
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