Teletouch Communications, Inc. (TLLE) Sells Two-Way Radio Business, Focuses on Broader Cellular and Electronics Distribution
With its start as a Motorola Service Station in east Texas, Teletouch and its predecessor companies have been known for nearly a half century as providers of two-way radio products and services, eventually including cellular, GPS-telemetry, and wireless messaging, and operating a chain of 11 retail and authorized agent stores in North and Central Texas. Today, with its developing presence as a cellular and electronics wholesale distributor, the company has chosen to divest its two-way radio division. Yesterday, Teletouch announced the sale of its two-way radio and public safety equipment business unit for approximately $1.5 million to DFW Communications, Inc., a well-known service communications equipment dealer in the Dallas – Ft. Worth area. The sale includes Teletouch’s FCC radio frequency licenses used to operate its two way radio networks in North and East Texas.
Teletouch President and COO, T.A. “Kip” Hyde, Jr., said of the sale: “The decision to divest our two-way radio division is another step in the ongoing transition of Teletouch to large scale wholesale distribution of cellular and consumer electronics products, and was made after concluding that this business unit was no longer aligned with the Company’s long-term growth strategy. The sale of these assets supports our disciplined approach to capital allocation and effective use of working capital, with the proceeds being used to pay down debt, while we focus on growing our core wholesale distribution business.”
Teletouch, through its wholly owned subsidiary, Progressive Concepts, Inc., now operates a national distribution business, PCI Wholesale, primarily serving Tier-1 (AT&T, T-Mobile, Verizon, Sprint) cellular carrier agents, Tier-2, Tier-3 and rural carriers, as well as auto dealers and smaller consumer electronics retailers. Teletouch expects its wholesale distribution segment, the focus of the company’s growth strategy, to become the company’s primary earnings driver by the middle of calendar 2015. Teletouch has executed a number of distribution agreements with various cellular accessory and handset manufacturers, and with other mobile electronics companies.
For additional information on Teletouch Communications, visit the company’s website at www.teletouch.com
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