1. News
December 4, 2020

TESSCO exits retail business, sells certain assets to Voice Comm

Value-added solutions provider TESSCO Technologies has exited the retail business with the sale of certain assets to North American mobile accessory distributor Voice Comm.

Value-added solutions provider TESSCO Technologies has exited the retail business with the sale of certain assets to North American mobile accessory distributor Voice Comm.

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The company initially announced the decision in October and is part of its strategy to focus on higher-margin commercial segment.

The sale includes most of TESSCO’s retail inventory, the Ventev brand, and some other retail associated assets.

The company will retain its Ventev brand for commercial business products and operations purpose.

Financial details of the transaction remain undisclosed.

Speaking of the development, TESSCO Technologies president and chief executive officer Sandip Mukerjee said: “This planned exit from our retail business is an important step in executing on our strategy to focus on growth opportunities and better position the company for the long term.

“This is another milestone that our board and management team have achieved to ensure the stability of the business and drive shareholder value creation.

“We are now fully dedicated to serving our commercial customers and are in the process of redeploying our assets to take advantage of what is a once-in-a-generation opportunity amid the industry’s current and unprecedented rollout of new technologies.”

Following the acquisition, TESSCO will work with its retail customer and supplier partners to ensure a smooth transition.

The exit from the retail business could generate around $8m to $12m in net cash flow in fiscal 2021, according to the company.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.