The purchase price includes $1 million in cash and 2.48 million shares of WPCS common stock.
“The acquisition of Walker Comm is a critical milestone for our company,” said Andrew Hidalgo, WPCS chairman and CEO. “It establishes WPCS as a national provider of wireless solutions and strengthens our project management expertise.”
Walker Comm designs, installs and tests services fiber-optics, data and voice cabling and wireless systems. It also offers network configuration services and data network audits.
Walker Comm’s customers include Cisco Systems
, Stanford University and the State of California. WPCS believes the purchase will add about $10 million in annual revenues to its balance sheet.
The sale “expands our ability to provide structured cabling and wireless solutions on a national basis,” said Donald Walker, president of 5-year-old Walker Comm.
Following the close of the deal, he will remain in charge of Walker Comm, which will operate as a subsidiary of WPCS. Walker will also become an executive for WPCS. About 70 of the company’s employees will stay on post-acquisition.
The purchase comes during a time of expansion, both nationally and abroad, for WPCS. The company recently signed a deal with Sumatralink/Datalink, a Pacific Rim wireless solutions provider, to provide a wireless solution for
remote areas of Indonesia.