Tii Network Technologies Acquires Fiber Optics Company
EDGEWOOD, N.Y., March 14, 2011 -- Tii Network Technologies, Inc. (Nasdaq: TIII), a leader in designing, manufacturing and marketing network products for the communications industry, today announced it has acquired 100% of the stock of Frederick Fiber Optics (F2O).
The purchase price consists of an initial cash payment made from cash on hand and incentive payments based on the achievement of certain performance objectives over the next two years. The purchase price was not disclosed.
F2O manufactures a wide variety of high performance fiber optic cable assemblies, wall and rack mounted fiber distribution panels, and miscellaneous fiber accessories and services. Headquartered in Frederick Maryland, F2O is a profitable, fast growing company with sales in excess of $2 million. The acquisition is expected to be accretive to earnings in the third quarter.
Kenneth A. Paladino, President and Chief Executive Officer, stated, "This acquisition accelerates our penetration into the broader fiber optic market while leveraging our current sales channels and resources. Our fiber product sales have been growing quickly, and we believe this acquisition is an ideal platform around which to consolidate our various fiber product initiatives."
Alex Feezer, founder and CEO of F2O will become Vice President of the new Tii Fiber Optics Division. Mr. Feezer stated that "With Tii's capital resources, sales channels and technical capabilities, I believe that the combination of the two companies will result in a very dynamic competitor in this marketplace. I am very excited about joining the Tii team and my new role in the execution of our fiber optic growth strategy."
Mr. Paladino went on to say, "We believe that F2O's products and Alex's proven leadership capabilities and industry knowledge, combined with our aggressive product development strategy, will result in increased sales from a much broader fiber optics product line that will make a significant contribution to our growth. Please see many of these new products on our new website that we have launched today - tiinettech.com".
About Tii Network Technologies, Inc.
Tii Network Technologies, Inc. (NASDAQ: TIII) headquartered in Edgewood, New York, designs, manufactures and sells products to the service providers in the communications industry for use in their networks. Our products are typically found in the Telco Central Office, outdoors in the service providers' distribution network, at the interface where the service providers' network connects to the users' network, and inside the users' home or apartment, and are critical to the successful delivery of voice and broadband communication services. Additional information about the company can be found at www.tiinettech.com.
SOURCE Tii Network Technologies, Inc.
CONTACT: Kenneth A. Paladino, CEO, Tii Network Technologies, Inc., +1-631-789-5000
Web Site: www.tiinettech.com
