Network Installation Corp., an IT and communications solutions provider, announced that it has acquired 100% of the outstanding shares of Las Vegas-based Kelley Communications Company, Inc. d/b/a Kelley Technologies (KCCI). KCCI is a national communications systems designer and project engineering firm. KCCI shareholders received 14,061,577 shares of Network Installation common stock in the exchange. Based on Network Installation’s un-audited reported revenue of $1.9 million through June 30, 2005 and KCCI’s un-audited revenue of approximately $4.9 million through August of 2005, the combined company’s annual revenue run rate for 2005 is expected to be approximately $10 million.
Network Installation CEO Jeffrey R. Hultman stated, “Since the new management team arrived in March of this year, we have publicly stated our strategy of accelerating our growth through acquisition and after carefully evaluating a number of opportunities which we were presented with, we chose to partner with Kelley Technologies. The rationale for our partnership is simple; the obvious synergies between our businesses, Kelley’s long history of success with an A-list of clients, and most importantly, the stellar reputation of Michael Kelley and his team.” He added, “Our strategy is aggressive, but our goal is to continue to grow rapidly through high quality strategic acquisitions such as Kelley, and grow organically, resulting in significant scale within three years. I believe we have now taken the first but most important step towards that objective.”
KCCI President Michael Kelley commented, “I am truly excited about this partnership with Network Installation and pursuing the many opportunities we currently have before us. Jeff and his team have a track record of multiple major successes within the communications universe. Network Installation’s core competencies in the delivery of data and voice communications systems are a perfect complement to our technology design, engineering, and project management capabilities. I look forward to achieving great success and to the continued growth of our combined organization.”
Pursuant to the Agreement, Mr. Hultman was appointed Chairman of Network Installation and will remain as CEO. Mr. Kelley will remain President of KCCI, a wholly-owned subsidiary, and will join the Network Installation Board of Directors. Network Installation CFO Michael V. Rosenthal, has also been appointed to the Board of Directors. Additionally, Network Installation Chairman Michael Novielli and Directors Douglas Leighton and Theodore Smith have resigned their positions as Directors of the Company. The Company plans to fill the remaining two vacancies on the Board before the end of the year.
Outgoing Network Installation Chairman Michael Novielli stated, “On behalf of Mssrs. Leighton and Smith, we are extremely proud to have delivered such a significant event and dynamic management team to the Network Installation shareholders. Since our involvement began in April 2003, we’ve seen the Company grow its annual revenues dramatically. I believe we are departing the Company with our mission accomplished. It’s now time to leave Network Installation in the very capable hands of the management team we’ve assembled, so that they may pursue their clearly articulated vision.”
Mr. Hultman added, “The Dutchess organization is one of the most proficient, resourceful and capable teams of professionals I have dealt with in my 35 year business career. Their ability to create solutions to challenges in matters of finance, business strategies, legal or accounting alike, are second to none. They have been a tremendous asset to management and certainly critical to the growth of Network Installation. We are grateful for their past contributions and although they still remain a major shareholder we will miss their day to day input.”