SAN DIEGO—Wireless Facilities Inc., which designs and manages wireless networks, announced it entered a definitive agreement to acquire Madison Research Corp.
WFI said the acquisition would advance its customer footprint within the U.S. Department of Defense, including with the U.S. Army and Air Force as well as NASA. MRC offers technical, engineering and information-technology solutions.
The transaction is valued at $69 million.
“WFI’s acquisition of Madison Research is extremely significant and strategic for the company,” said Eric DeMarco, president and chief executive officer of WFI. “As we have discussed previously, a key strategy for WFI is to grow our government business as quickly and selectively as practical to add continued stability and more predictable long-term revenue for the overall business. MRC is a particularly ideal fit for WFI because of its very deep relationships across a number of military agencies and because of its existing, high-value contract vehicles.”
WFI also reported its second-quarter financial results. Revenues were $86.3 million, up slightly from revenues of $83.8 million last quarter, but down from revenues of $95.3 million during last year’s second quarter. The company said the year-over-year decline was due to a drop in its carrier business related to the completion of a large program in Europe and slower-than-expected ramp up of an ongoing project in the United States.
Net loss for the quarter was $600,000, which includes a loss from discontinued operations of $200,000. The company’s net loss is improved from its loss of $3.3 million during the same period last year.
