Tessco Completes $160 Million Strategic Acquisition Deal, Stock Set to Delist from Nasdaq

Wireless telecommunications distributor Tessco Technologies has finalized a major merger transaction with private equity firms Lee Equity Partners and Twin Point Capital, bringing its trading on the Nasdaq to an end. The all-cash transaction valued Tessco at approximately $160 million, with each share converted to $9.00 per share upon closing.

Deal Overview and Shareholder Approval

The merger received shareholder approval during a special meeting held on July 13, 2023. Under the agreement, every outstanding share of Tessco common stock was converted into the right to receive $9 in cash. Following the completion of this transaction, Tessco stock will cease trading and be delisted from the Nasdaq exchange, marking a significant transition for the publicly traded company.

Strategic Combination Creates Telecommunications Powerhouse

Through this acquisition, Tessco joins forces with Alliance Corporation—a value-added equipment distributor for wireless network infrastructure—and GetWireless, LLC, a specialist in cellular IoT solutions. This combination is designed to establish a leading value-added telecommunications distributor across North America.

The merged entity will maintain Tessco’s existing operational facilities in Hunt Valley and Timonium, Maryland, as well as its Reno, Nevada location. The partnership aims to expand the facility footprint, broaden the product portfolio, and enhance value-added capabilities by leveraging the combined strengths of all three companies.

Services and Market Position

Tessco brings over 40 years of experience as a technology distributor serving the wireless infrastructure ecosystem. The company supplies products across mobile communications, Wi-Fi, Internet of Things, wireless backhaul, and related sectors, providing end-to-end solutions and technical expertise to industry manufacturers.

Alliance Corporation specializes in wireless network equipment distribution, 5G solutions, fixed wireless systems, and in-building signal enhancement. The company serves telecommunications carriers, system integrators, and enterprises across telecommunications, government, healthcare, industrial, and other sectors.

GetWireless contributes embedded cellular modules, intelligent gateways, and specialized IoT connectivity solutions, serving mobile operators, resellers, integrators, and OEMs requiring enterprise and industrial-grade cellular systems.

Advisors and Financial Details

William Blair & Company served as Tessco’s exclusive financial advisor, while Ballard Spahr LLP provided legal counsel to the company. Lee Equity Partners and Twin Point Capital were represented by Weil, Gotshal & Manges LLP, DLA Piper LLP, and Harter Secrest & Emery LLP.

Lee Equity Partners, a New York-based private equity firm, typically targets equity investments between $50 million and $150 million in middle-market companies with enterprise values of $100 million to $500 million. Twin Point Capital, also based in New York, focuses on building market-leading companies within communications, technology, and technology-enabled services sectors.