Multiband Corporation has a nearly singular purpose -- providing installation services for satellite and cable service companies and system operators. Serving as a fulfillment arm for DIRECTV, it generates most of its sales by handling nearly 20% of those single-family home installations. Multiband also provides broadband services for apartment complexes and hospitality facilities; and it offers public digital signage services, and engineering and construction services for telecom companies. A subsidiary of Goodman Networks, it is the largest national systems operator for apartment complexes for DIRECTV, covering the contiguous US except Montana and Wyoming. Its home service is mostly east of the Mississippi.
Change in Company Type
A privately held provider of wireline and wireless telecommunications services, Goodman Networks purchased Multiband in 2013 for $116 million in cash. The deal diversifies Goodman's customer base and will enable it to better compete for emerging wireless opportunities.
Multiband's operates in three segments - field services; multi-dwelling units; and energy, engineering and construction (EE&C) services. Field services accounts for more than 85% of sales and includes the fulfillment services for DIRECTV customers in single-family homes. The field services business provides similar services to other cable and internet providers, as well as commercial clients. Internet providers it serves include AT&T, HughesNet, and WildBlue.
The multi-dwelling units segment (10% of sales) bills customers for the voice, Internet and video services at apartment complexes. In addition, Multiband serves as a master system operator for DIRECTV, which allows it to offer satellite television services to apartment complexes through a network of affiliated operators. Here the company owns and manages more than 159,000 subscribers, and supports more than 36,000 additional users through its call center.
Finally, the EE&C segment serves the wired and wireless telecommunications industry, including public safety networks, renewable energy services (wind and solar projects), and other design and construction services.
The company has more than 35 offices in about 20 states.
Typically, as Multiband's field services segment goes, so goes total revenues. (In other words, if DIRECTV has a good year, so does Multiband.) Overall sales for 2012 increased 2% to $305 million. But in 2012, the field services segment actually saw a slight decline, which was offset by the company's multi-dwelling units and EE&C services divisions' increased growth from acquisitions.
Mergers and Acquisitions
In 2012 Multiband moved to strengthen that business by announcing it would acquire New Jersey-based MDU Communications for more than $40 million. The purchase brought in another 75,000 subscribers. Later that year it expanded into the cable television fulfillment business, when it bought certain assets from broadband technology services company Groupware International.