|[March 09, 2017]
FTE Networks and Benchmark Builders to Join Forces
FTE Networks, Inc. (OTCQX:FTNW) ("FTE" or the "Company"),
a leading network infrastructure solutions provider in the technology
and communications industries, today announced a definitive agreement to
join forces with privately held Benchmark Builders, Inc. ("Benchmark"),
a leading provider of construction management services based in New York.
The transaction will enable FTE to deliver integrated network services,
cutting-edge technology, and construction management services on the
largest and most complex projects, from conception to completion.
Benchmark is a premier construction management services firm and general
contractor, with a powerful industry brand and strong presence in the
New York City metropolitan market.
Benchmark offers FTE an established platform to aggressively roll-out
FTE's "compute to the edge" installations in New York City and the
surrounding region. This ground-breaking technology allows building
owners to provide the best broadband access at significant savings to
both landlords and tenants, while creating revenue generating
opportunities for landlords.
Benchmark President Fred Sacramone will continue as President and become
a member of the FTE Networks Board. Senior management of Benchmark will
remain the same, and the acquisition will provide new opportunities to
the employees of both businesses.
"We believe that this transaction offers tremendous benefits to our
clients, stockholders, and employees - and significantly accelerates our
strategy of developing an integrated technology and construction
management offering," said Michael Palleschi, FTE's President and Chief
Executive Officer. "We can now serve our clients as a one-stop shop,
providing the highest quality design, construction, operation, and
maintenance of network infrastructure while providing cutting-edge
technology and meeting the growing customer demand for turnkey
Sacramone added: "Joining FTE is the logical next step in the continued
growth and success of Benchmark, allowing us to expand our reach
nationally and seize new opportunities. We have long-standing
relationships with FTE senior executives and look forward to becoming
the cornerstone of FTE's construction management practice. We are
excited about the tremendous possibilities ahead."
FTE will finance the $75 million transaction with cash, FTE common
stock, and new financing. The alliance is expected to close in the
second quarter of 2017.
The combination will provide significant economies of scale, synergies,
complementary business activities, and new growth opportunities in
strategic locations across the U.S. Benchmark helps FT significantly
expand its portfolio of sector expertise and enables the Company to
accelerate its penetration of the fast-growing market for data center
Significantly, the addition of Benchmark's customer base and project
pipeline to FTE's project management and technical capabilities propel
FTE to the forefront of the network infrastructure, technology, and
interior construction markets. The acquisition will immediately add
Benchmark's three-year $300 million in project backlog to FTE's
three-year $170 million project backlog.
"This alliance reflects continued commitment to our strategy of growth
and diversification," Palleschi added. "Benchmark's expertise in the
strategically important New York market further deepens our market
presence. Benchmark also adds to our infrastructure services and
technology capabilities, strengthening core competencies that FTE will
be able to leverage across its global operations. We are delighted to
welcome Benchmark's employees to FTE, and look forward to the new
Benchmark, founded in 2008, has a track record of consistent revenue
growth and profitability. The company has seasoned leaders with an
average of 30 years of construction management experience.
Benchmark specializes in construction management services, and provides
program management and other construction-related services. The company
serves both publicly listed and private clients in many sectors,
including telecommunications, commercial, industrial, broadcast,
technology, infrastructure, healthcare, and education.
Stifel, Nicolaus & Company served as financial advisor and K&L Gates as
legal advisor to FTE Networks. Terra Nova Capital served as financial
advisor and Prior Cashman as legal advisor to Benchmark.
About FTE Networks, Inc.
FTE Networks is on the leading edge of network transformation helping
communications service providers, government and enterprise customers
evolve their networks to meet advancing technology requirements via
network infrastructure, and edge computing solutions to quickly enhance
service innovation and deliver new revenue streams. With a focus
on smart design, open architectures and consistent standards, along with
expertise in building, operating, and maintaining networks, FTE solves
complex network and system challenges that reduce costs and deployment
time to accelerate delivery and optimize performance of network
infrastructure. Operating five (5) industry segments; Data Center
Infrastructure, Fiber Optics, and Wireless Integration, Network
Engineering, Compute to the Edge, FTE Networks is headquartered in
Naples, Florida, with offices throughout the United States and Europe.
For more information, please visit: www.ftenet.com.
About Benchmark Builders, Inc.
Benchmark is a New York-based construction manager and general
contractor serving a diverse and sophisticated client base in the
telecommunications, commercial, industrial, broadcast, technology,
infrastructure, healthcare, and education industries. The company
delivers unique project solutions in the complex New York marketplace.
It emphasizes the ability of its experienced staff to become an integral
part of a client's project team, responding to every client need and
request. Benchmark excels at technologically complex work building
broadcast studios and infrastructure, as well as large projects from $30
million to $100 million. Benchmark maintains its strong reputation by
consistently delivering on the quality, budget, and schedule
expectations of some of the industry's most demanding clients.
Forward Looking Statements
This release may contain forward-looking statements relating to the
business of FTE. All statements other than historical facts are
forward-looking statements, which can be identified by the use of
forward-looking terminology such as "believes," "expects" or similar
expressions. These statements involve risks and uncertainties that may
cause actual results to differ materially from those anticipated,
believed, estimated or expected. These risks and uncertainties are
described in detail in our filings with the Securities and Exchange
Commission. Forward-looking statements are based on FTE's current
expectations and beliefs concerning future developments and their
potential effects on FTE. There is no assurance that future developments
affecting FTE will be those anticipated by FTE. FTE undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required under applicable securities laws.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170309005180/en/
[ Back To TMCnet.com's Homepage ]