The purchase price for the acquisition is $3 million subject to a working capital adjustment.
Majetel has been a service provider to the telecommunications industry for the last 15 years. The company had revenues of approximately $10 million in 2009, mainly from its activities in Quebec, Ontario and New Brunswick, and has 45 experienced field employees. Management of Majetel will remain with the company to ensure a smooth transition.
Pierre Yves Methot, Chairman and CEO of Prestige Telecom, commented: "The timing of this acquisition is perfect for Prestige as it will significantly strengthen our tower construction and maintenance capabilities in Quebec, especially with new potential business opportunities presently arising from the new wireless entrants. We believe that the integration of Majetel into our fold will enable us to grow this area of our business much faster, as we continue to enhance and expand our service offering to our customers."
About Prestige Telecom Inc.
Prestige Telecom is a provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.
In Canada, Prestige has over 950 professional and technical personnel operating from 17 service locations in nine provinces. Prestige’s head office is located in Baie d’UrfÃ© (Montreal), QC.
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