CSE Global, through its indirect wholly-owned subsidiary, CSE Crosscom USA has entered into a sale and purchase agreement with Cynthia Glashagel Trust and Kurt Hessler to acquire all of the issued and outstanding equity interests of Chicago Communications LLC for US$8.5 million ($11.1 million).
Chicago Communications is a US-based company headquartered in Elmhurst, Illinois with an additional location in Dyer, Indiana. Operating since 1953, the company sells, rents, installs, and maintains communications equipment for customers located primarily in the states of Illinois and Indiana.
The acquisition, completed on April 30, will be paid in cash to two tranches. The first will be an amount of US$7.65 million on April 30, while the remaining amount of the will be payable subject to any post-closing adjustments to be determined within 90 days from the completion date.
Besides Chicago Communications being earnings-accretive, CSE Globalhighlights that the acquisition forms part of its strategy to expand and grow its communications businesses in the infrastructure industry markets and participate in an expanding sector where demand for increased connectivity and security is expected to continue to grow.
The acquisition will also strengthen CSE Global's existing business partner and customer relationships for its communications business, as well as extend its geographic coverage into the US market to four states; California, Florida, Illinois and Indiana.
As at 2.19 pm, shares in CSE Global are trading 0.5 cents higher or 1.19% up at 42.5 cents.
