Looking to gain control over its installation network, DirecTV is acquiring 180 Connect Inc., one of North America's largest providers of installation, integration and fulfillment services, officials said Friday.
Under the terms of the agreement, DirecTV will acquire 100% of 180 Connect's outstanding common stock and exchangeable shares for $1.80 per share. With debt included, the deal, expected to close in the third quarter, is valued at just over $100 million.
In announcing the acquisition, DirecTV said the merger will give it “control over a significant portion of its installation and home service network.”
DirecTV has been outsourcing all of its installation service operations through 13 home-service provider companies.
By acquiring 180 Connect, DirecTV said it will gain control of one of its largest installation and home-service providers in 45 U.S. market locations throughout California, Colorado, Oregon, Washington, Utah, Montana, Idaho, Wyoming, Arkansas, Virginia, Hawaii and western Pennsylvania.
“The acquisition of 180 Connect enables DirecTV to gain operational control over a large portion of its installation and service network and is an important part of our effort to continuously improve the customer experience,” DirecTV executive vice president of operations Mike Palkovic said in a statement.
“Our installation technicians are the first and often the only point of face-to-face contact that a customer has with DirecTV and this merger underscores the importance we place on this interaction,” he said. “We welcome 180 Connect's employees to the DirecTV family and with its solid base of technicians in the field and strong back-office support, we believe we have a great opportunity for growth and to provide an even higher level of service that our customers have come to expect.”
In a separate transaction, UniTek USA has agreed to acquire 100% of 180 Connect's cable-services operating unit and certain DirecTV installation-services markets in exchange for UniTek's satellite installation services in New York City, Burbank and Bloomington, Calif., and cash. This transaction is expected to be completed immediately following DirecTV’s purchase of 180 Connect.
“UniTek is pleased to participate in this highly strategic transaction with DirecTV that strengthens our position as the premier provider in telecom, cable and satellite service,” UniTek USA CEO Scott Hisey said in a statement. “This transaction will substantially expand the scale and footprint of our cable-service division and we look forward to continuing to provide outstanding service to 180 Connect's cable customers. We are pleased to welcome the 180 Connect employees who will be joining the UniTek team and at the same time we thank those UniTek employees who will be transitioning to DirecTV for their outstanding service.”