ComSovereign completes deal for equipment maker
- By Ross Wilkers
- Jul 07, 2020
5G technology consortium ComSovereign Holding Corp. has completed one of first acquisitions since the merger that created it was closed late last year.
In a release and regulatory filings Tuesday, ComSovereign said it paid $19 million in cash and stock for Virtual Network Communications, a provider of mobile and fixed broadband communication equipment for government and commercial enterprises.
The transaction was first announced in February when ComSovereign said both parties entered a letter of intent, but added the deal was subject to a due diligence review followed by negotiation and execution of a definitive acquisition agreement.
ComSovereign and VNC signed the agreement in May to undertake the deal, which will be financed by a $3 million cash payment primarily from management members and issuing stock. Dallas-based ComSovereign is a publicly-held company but its stock is traded over the counter, or without the supervision of a stock exchange.
One month after announcing its intent to buy VNC, ComSovereign closed its first deal for the manufacturing operations and customer contracts of Fast Plastic Parts and subsequently launched its own domestic plastic and metal components division called Sovereign Plastics.
The idea behind that transaction was to establish a U.S.-based manufacturing supply chain amid ComSovereign’s overall push to be a pure-play provider of communications technologies in support of emerging 5G networks.
Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at email@example.com. Follow him on Twitter: @rosswilkers. Also connect with him on LinkedIn.