- Spectrum Global Solutions reports third quarter 2019 financial results
- Closes acquisition of global battery technology company WaveTech GmbH
- Receives $6.9 million in new contract awards
With the recent acquisition of WaveTech GmbH, Spectrum Global Solutions Inc. (OTCQB: SGSI) has strengthened its support capabilities for telecommunications companies building the new 5G infrastructure. The acquisition has also opened the door to new markets for Spectrum’s core business, particularly in Europe, Asia and Africa, where the acquired entity maintains several key relationships. Spectrum expects to benefit from substantial economies of scale by capitalizing on the cross-selling opportunities now made possible. The company announced the acquisition and several other positive developments in its release of financial results for Q3 2019, including close to $7 million in new contracts and establishment of a Canadian subsidiary (http://ibn.fm/oQkVm).
The WaveTech GmbH acquisition marks a new chapter in Spectrum’s remarkable success story (http://ibn.fm/qm0aZ). Since starting operations over three decades ago, the company has successfully executed over 150,000 projects. Spectrum has delivered cost-effective, scalable, robust solutions for communication carriers, utilities, enterprise companies, OEMs and others. As 5G rollout accelerates, the company’s opportunity pipeline has swelled to around $137 million. The WaveTech GmbH add-on is expected to turn many of those opportunities into positive outcomes.
WaveTech GmbH is a global German technology company, currently working with a Fortune 1000 client base, that provides energy management, data analytics and monitoring services extending the useful life of battery systems. The company’s patented Crystal Control Technology (CCT) (registered), the product of over a decade of R&D efforts in Norway and Germany, prevents the buildup of non-soluble lead sulphate crystals in lead-acid batteries. CCT also prevents the degradation of the active materials microstructure, the primary cause of failure for over 80 percent of batteries. The CCT technology is expected to ensure significantly longer lifespans for batteries used in telecommunications networks, data centers and similar applications.
The services offered by WaveTech GmbH complement Spectrum’s core communications network infrastructure and maintenance solutions. The union of the two companies will allow the marketing of WaveTech’s GmbH’s globally patented CCT technology to Spectrum’s existing customer base, thus helping clients reduce the capital expenditures required for power supply systems, as well as improving the reliability of their battery back-up systems. Consequently, the merged entity is expected to benefit from considerable economies of scale.
Spectrum is now operating in Canada. The company has established a subsidiary – ADEX Canada – to address network infrastructure services opportunities with both new and existing tier-1 clients in the Canadian market. ADEX Canada will offer turnkey project staffing solutions that include engineering, furnishing, installation, testing and integration services for wireline, wireless, broadband, VoIP, 4G/5G and public safety communications networks.
Moreover, Spectrum has signed a total of $6.9 million in new contracts, composed of work orders from both new and existing clients. These new contract awards are in addition to any revenue derived from existing master services agreements already in place with tier-1 carriers and infrastructure aggregators. They include a 3-year, nationwide contract renewal with tier-1 U.S. telecommunications company for outside plant labor, construction and maintenance services through the Company’s ADEX subsidiary, as well as a new contract, through the company’s AW Solutions subsidiary, with a tier-1 infrastructure aggregator in support of 5G network deployment in a major U.S. metropolitan area.
For more information, visit the company’s website at www.SpectrumGlobalSolutions.com
NOTE TO INVESTORS: The latest news and updates relating to SGSI are available in the company’s newsroom at http://ibn.fm/SGSI