Tessco spikes 87% after $9 per share acquisition by PE firms

Shares of wireless infrastructure firm Tessco (TESS) advanced 87% or over $4 per share to $8.80 per share in pre-market trading on Wednesday after entered into a definitive merger agreement with entities affiliated with Lee Equity Partners and Twin Point Capital, which also own Alliance Corporation, a value-added distributor of equipment for the wireless industry, and GetWireless, , a value-added distributor of cellular solutions that connect the Internet of Things . Under the terms of the merger agreement, all outstanding shares of Company common stock will be acquired for $9.00 in cash, resulting in a Company enterprise value of approximately $161.4M…Following the closing of the transaction, Tessco will maintain its facilities in Hunt Valley and Timonium, Maryland and in Reno, Nevada, as well as broaden its facility footprint, product offering, and value-added capabilities by partnering with Alliance and GetWireless to create a leading value-added telecommunications distributor in North America. "This deal is a win for Tessco shareholders and our customers," said Sandip Mukerjee, Tessco’s President and Chief Executive Officer. "The transaction price and premium reflect the success of our considerable turnaround efforts over the past three years, as well as Tessco’s current growth trajectory. Moreover, our customers will benefit from a greater breadth of products and service options as we team with two companies that are true leaders in serving the wireless industry, and that share our commitment to innovation and customer service." Other publicly traded companies that this could impact include American Tower (AMT), Westell Technologies (WSTL), PCTEL (PCTL) and Crown Castle (CCI).