EX-99.1
5
ex99-1.htm
FTE
Networks Acquires Benchmark Builders, Leading Construction Manager with 2016 Revenues of $386 Million
Transformational
Acquisition Leverages FTE's Technology and Network Infrastructure Platform with
Benchmark's Construction Management
Expertise
NAPLES,
Fla.-(BUSINESS WIRE) - FTE Networks, Inc. (OTCQX:FTNW) ("FTE" or the "Company"), a leading
network infrastructure solutions provider in the technology and communications industries, today announced that it has closed
a transaction to join forces with privately held Benchmark Builders, Inc. ("Benchmark"), a leading provider of construction
management services based in New York with unaudited revenues of approximately $386 million in 2016.
The
$75 million acquisition 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
intends to immediately begin to aggressively roll-out FTE's "compute to the edge" technology in New York City
and the surrounding region. This leading edge technology, called CrossLayer, allows building owners to provide exceptional broadband
access at significant savings to both landlords and tenants, while creating revenue generating opportunities for landlords and
recurring revenue platforms for FTE.
The
transaction will allow FTE and Benchmark to begin offering services to each other's clients and expanding their offerings
nationally.
"This
transaction is transformational for FTE and provides us with a powerful platform to continue to roll out our network services
solutions", said Michael Palleschi, FTE's President and Chief Executive Officer. "Our combination with Benchmark
reflects our strategy of growth and diversification, and enables us to offer clients a one-stop shop, providing the highest quality
design, construction, operation, and maintenance of network infrastructure and meeting customer demand for turnkey infrastructure
solutions. Benchmark's expertise in the strategically important New York market further deepens our market presence there".
The
acquisition provides significant economies of scale, synergies, and complementary business activities. The Company believes the
addition of Benchmark's customer base and project pipeline propel FTE to the forefront of the network infrastructure, technology,
and general contracting markets.
The
transaction offers valuable benefits to FTE's clients, stockholders, and employees - and significantly accelerates
the company's strategy of developing an integrated technology and construction management offering. The acquisition will
immediately add Benchmark's backlog over the next year of $216 million and $300 million over the next three years to FTE's
three-year $170 million project backlog.
FTE
financed the transaction with a combination of cash, seller's notes, and FTE stock.
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
President Fred Sacramone will continue as President and become a member of the FTE Networks Board of Directors, and Benchmark,
now a wholly owned subsidiary of FTE, will continue to operate as it always has. "We are thrilled to be joining forces with
FTE", Sacramone said. "This powerful combination will allow Benchmark to offer our clients the very best construction
and network infrastructure services, both in the New York City area and around the country".
Lateral
Investment Management, which invests in growth capital solutions for leading middle market businesses in the United States, has
been FTE's Senior Lender since 2015 and has amended its current credit agreement to add additional capital to facilitate
this transaction.
"The
dynamic combination of FTE and Benchmark brings together unique capabilities to build high quality commercial offices, next-generation
infrastructure and network services at scale for Fortune 500 clients", said Patrick Feeney, Managing Director of Lateral
Investment Management. "We are enthusiastic supporters of this transformational acquisition which launches a new phase in
the growth of the company".
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.
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 US and presence in 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/
FTE
Networks, Inc.
Kirstin
Gooldy, 877-850-4308
ir@ftenet.com
or
Investor
Relations:
MBS
Value Partners
Monique
Skruzny, 917-913-4493
monique.skruzny@mbsvalue.com
or
Media:
MBS
Value Partners
Jon
Elsen
O:
914-305-6981
M:
914-708-6041
Jon.elsen@mbsvalue.com
or
MBS
Value Partners
Jane
Searle
O:
212-710-9686
M:
631-572-9208
jane.searle@mbsvalue.com
Source:
FTE Networks, Inc.
Released
March 9, 2017

EX - 99 . 1 5 ex99 - 1 . htm FTE Networks Acquires Benchmark Builders , Leading Construction Manager with 2016 Revenues of $ 386 Million Transformational Acquisition Leverages FTE 's Technology and Network Infrastructure Platform with Benchmark 's Construction Management Expertise NAPLES , Fla . - ( BUSINESS WIRE ) - FTE Networks , Inc . ( OTCQX : FTNW ) ( " FTE " or the " Company " ) , a leading network infrastructure solutions provider in the technology and communications industries , today announced that it has closed a transaction to join forces with privately held Benchmark Builders , Inc . ( " Benchmark " ) , a leading provider of construction management services based in New York with unaudited revenues of approximately $ 386 million in 2016 . The $ 75 million acquisition 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 intends to immediately begin to aggressively roll - out FTE 's " compute to the edge " technology in New York City and the surrounding region . This leading edge technology , called CrossLayer , allows building owners to provide exceptional broadband access at significant savings to both landlords and tenants , while creating revenue generating opportunities for landlords and recurring revenue platforms for FTE . The transaction will allow FTE and Benchmark to begin offering services to each other 's clients and expanding their offerings nationally . " This transaction is transformational for FTE and provides us with a powerful platform to continue to roll out our network services solutions " , said Michael Palleschi , FTE 's President and Chief Executive Officer . " Our combination with Benchmark reflects our strategy of growth and diversification , and enables us to offer clients a one - stop shop , providing the highest quality design , construction , operation , and maintenance of network infrastructure and meeting customer demand for turnkey infrastructure solutions . Benchmark 's expertise in the strategically important New York market further deepens our market presence there " . The acquisition provides significant economies of scale , synergies , and complementary business activities . The Company believes the addition of Benchmark 's customer base and project pipeline propel FTE to the forefront of the network infrastructure , technology , and general contracting markets . The transaction offers valuable benefits to FTE 's clients , stockholders , and employees - and significantly accelerates the company 's strategy of developing an integrated technology and construction management offering . The acquisition will immediately add Benchmark 's backlog over the next year of $ 216 million and $ 300 million over the next three years to FTE 's three - year $ 170 million project backlog . FTE financed the transaction with a combination of cash , seller 's notes , and FTE stock . 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 President Fred Sacramone will continue as President and become a member of the FTE Networks Board of Directors , and Benchmark , now a wholly owned subsidiary of FTE , will continue to operate as it always has . " We are thrilled to be joining forces with FTE " , Sacramone said . " This powerful combination will allow Benchmark to offer our clients the very best construction and network infrastructure services , both in the New York City area and around the country " . Lateral Investment Management , which invests in growth capital solutions for leading middle market businesses in the United States , has been FTE 's Senior Lender since 2015 and has amended its current credit agreement to add additional capital to facilitate this transaction . " The dynamic combination of FTE and Benchmark brings together unique capabilities to build high quality commercial offices , next - generation infrastructure and network services at scale for Fortune 500 clients " , said Patrick Feeney , Managing Director of Lateral Investment Management . " We are enthusiastic supporters of this transformational acquisition which launches a new phase in the growth of the company " . 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 . 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 US and presence in 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/ FTE Networks , Inc . Kirstin Gooldy , 877 - 850 - 4308 ir@ftenet.com or Investor Relations : MBS Value Partners Monique Skruzny , 917 - 913 - 4493 monique.skruzny@mbsvalue.com or Media : MBS Value Partners Jon Elsen O : 914 - 305 - 6981 M : 914 - 708 - 6041 Jon.elsen@mbsvalue.com or MBS Value Partners Jane Searle O : 212 - 710 - 9686 M : 631 - 572 - 9208 jane.searle@mbsvalue.com Source : FTE Networks , Inc . Released March 9 , 2017