December 15, 2006
OLD BRIDGE, N.J. -- Blonder Tongue Laboratories, Inc. (AMEX: "BDR") today announced that it has consummated the sale of BDR Broadband, LLC, its Texas-based private cable television business, to DirecPath, a joint venture between Hicks Holdings LLC and The DIRECTV Group, Inc., for an aggregate purchase price of approximately $3.1 million.
The transaction will provide Blonder Tongue with a gain of approximately $875,000 on the sale and should also result in annualized savings of approximately $525,000. The transaction also includes certain long-term equipment purchase commitments from DirecPath, which are anticipated to form the basis of a new and meaningful customer relationship. It is also anticipated that Blonder Tongue may provide DirecPath with certain systems engineering and technical services.
The transaction enhances DirecPath's property portfolio, particularly in the Texas area, to provide bundled DIRECTV® programming, broadband voice and data services and security to multiple dwelling communities.
Commenting on the transaction, James A. Luksch, Chairman and Chief Executive Officer said, "We could not have asked for a more suitable buyer for this business. DirecPath is a leader servicing the multiple dwelling unit market. We see significant growth opportunities developing from the equipment and engineering services agreements that were negotiated as part of this transaction."
DirecPath CEO, Paul Savoldelli commenting on the transaction, added "We're excited about the BDR Broadband acquisition as it enables DirecPath to quickly build the critical mass necessary to compete in major markets like Dallas and Houston, as a part of our overall buy-and-build strategy."
Blonder Tongue Laboratories Inc.
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