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.
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.