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FTE Networks, Inc. a network infrastructure solutions provider in the technology and communications industries, announced that it has closed a transaction to join forces with privately held Benchmark Builders, Inc. a provider of construction management services based in New York with unaudited revenues of approximately $386 million in 2016.
The $75 million acquisition will enable FTE to deliver integrated network services, cutting-edge technology, and construction management services on the largest and most complex projects, from conception to completion.
Benchmark intends to immediately begin to aggressively roll out FTE’s “compute to the edge” technology in New York City and the surrounding region. This leading edge technology, called CrossLayer, allows building owners to provide exceptional broadband access at significant savings to both landlords and tenants, while creating revenue generating opportunities for landlords and recurring revenue platforms for FTE.
The transaction will allow FTE and Benchmark to begin offering services to each other’s clients and expanding their offerings nationally.
“This transaction is transformational for FTE and provides us with a powerful platform to continue to roll-out our network services solutions,” said Michael Palleschi, FTE’s president and CEO. “Our combination with Benchmark reflects our strategy of growth and diversification, and enables us to offer clients a one-stop shop, providing the highest quality design, construction, operation, and maintenance of network infrastructure and meeting customer demand for turnkey infrastructure solutions. Benchmark’s expertise in the strategically important New York market further deepens our market presence there.”
The acquisition provides significant economies of scale, synergies, and complementary business activities. The Company believes the addition of Benchmark’s customer base and project pipeline propel FTE to the forefront of the network infrastructure, technology, and general contracting markets.
The transaction offers valuable benefits to FTE’s clients, stockholders, and employees – and significantly accelerates the company’s strategy of developing an integrated technology and construction management offering. The acquisition will immediately add Benchmark’s backlog over the next year of $216 million and $300 million over the next three years to FTE’s three-year $170 million project backlog.
FTE financed the transaction with a combination of cash, seller’s notes, and FTE stock.
Benchmark President Fred Sacramone will continue as President and become a member of the FTE Networks Board of Directors, and Benchmark, now a wholly owned subsidiary of FTE, will continue operate as it always has. “We are thrilled to be joining forces with FTE,” Sacramone said. “This powerful combination will allow Benchmark to offer our clients the very best construction and network infrastructure services, both in the New York City area and around the country.”
Benchmark specializes in construction management services, and provides program management and other construction-related services. The company serves both publicly listed and private clients in many sectors, including telecommunications, commercial, industrial, broadcast, technology, infrastructure, healthcare, and education.
