Tandy Corp. is aiming for a piece of the high-speed Internet market by acquiring Amerilink Corp.
Tandy will pay $75 million in stock in a deal that values Amerilink at $15.60 a share.
“We see the acquisition as another significant step in our progression
toward becoming America’s home connectivity store,” said Tandy Chairman and CEO Len Roberts.
Amerilink, based in Columbus, Ohio, designs, installs and maintains home
use cabling systems for the transmission of video, voice and data on a
nationwide basis.
“Demand for our type of
services from service providers should be stimulated by the tremendous rise
in the use of cable modems and direct broadcast satellite,” said Amerilink Chairman and CEO Larry Linhart.
Linhart added that the “cable industry will continue to require our type of
services to upgrade their infrastructure, including the connection to
customers’ homes. The merger of RadioShack’s selling expertise, coupled
with Amerilink’s exceptional installation capabilities, truly gives the
RadioShack chain an extraordinary competitive edge.”
Amerilink reportedly completes 10,000 to 15,000 installations each week.
Residential installations account for 67 percent of the company’s sales.
Commercial cable installations make up the remaining 33 percent or revenue.
Pending government and Amerilink shareholder approvals, the transaction is
anticipated to close late August.
