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Teletouch Sells Two-Way Radio Business to DFW for $1.5M (8/17/12)
Teletouch Communications, a cellular services provider and consumer electronics distributor, sold its two-way radio and public-safety equipment business unit for about $1.5 million to locally owned and operated DFW Communications.
The sale includes the transfer of all the assets in the group, including the company’s FCC spectrum licenses used to operate its two-way radio networks in north and east Texas. Teletouch and its predecessor companies have provided two-way radio products and services, starting as a Motorola Service Station (MSS) in East Texas, for more than 48 years.
“The decision to divest our two-way radio division is another step in the ongoing transition of Teletouch to large-scale wholesale distribution of cellular and consumer electronics products, and was made after concluding that this business unit was no longer aligned with the company’s long-term growth strategy,” said Teletouch President and COO T. A. “Kip” Hyde Jr. “The sale of these assets supports our disciplined approach to capital allocation and effective use of working capital, with the proceeds being used to pay down debt, while we focus on growing our core wholesale distribution business.”
“We are excited about the synergy this acquisition brings, including the added capacity for our two-way wide-area communications on our own LTR trunking systems, new sales opportunities in both radio and public-safety equipment in east Texas, and all of the terrific professionals we now add to our team,” said Mike Fordinal, vice president and chief operating officer (COO) of DFW Communications. “We see this as a key investment, significantly expanding our territory and product selection, with tremendous added sales potential for all of our products, technologies and people resources, operating together in a focused enterprise.”
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