ADDvantage technologies (AEY) was discussed previously on this site as a very interesting net-net investment. This year they acquired net operating assets of Adams Global Communications and it passed mostly unnoticed (at least on the share price). On this fiscal year report, we see that Admas Global Communications acquisition was a strategic one.
Here’s the storyboard out of the 10K…
On May 20, 2011, the Company acquired the net operating assets of Adams Global Communications, LLC. AGC purchases and sells cable television access and transport equipment, digital converter boxes and modems in the United States, Canada and Latin American markets. In addition, the Company hired all 12 of AGC’s employees.The Company’s Broadband Remarketing International, LLC (“BRI”) subsidiary also sells digital converter boxes. We believe the acquisition of AGC was a strategic fit for the Company as BRI’s customer base was different than that of AGC, and BRI also sold product to AGC, effectively operating as a distributor to AGC. Effective with the closing of the acquisition, the Company began marketing BRI as Adams Global Communications or AGC.AGC also has a reseller agreement with Arris Solutions (“Arris”) to sell cable television equipment in the United States. The Company believes it can expand this relationship with Arris to stock certain product lines consistent with its On Hand – On Demand strategy.
In addition, we continue to expand our relationships with vendors and establish new vendors and product lines for our company. In 2011, we acquired the net operating assets of Adams Global Communications, LLC. With this acquisition, we became a reseller of Arris Solutions cable television products in the United States, and we now offer products from the top three vendors, Cisco, Motorola and Arris Solutions, in the cable television industry. In 2010, NCS became a Master Distributor for the United States distribution of Fujitsu Frontech North America encoders, decoders and media solutions products and a member of the Fujitsu global channel partner program servicing the United States. This relationship has started to expand our customer base into the broadcast market segment of the industry.