Houston-based wireless provider, Infrastructure Networks, recently acquired YR20, another company based in Houston that offers various network connectivity and analytical services. Merging the two companies will allow its users to function and operate in remote parts of the U.S. while enjoying dependable and speedy data communication capabilities.
According to the Houston Business Journal, both companies on their own were service providers for the gas and oil industry, and Infrastructure Networks’ CEO stated that its purchase of the company and its FastL2 technology lets Infrastructure Networks “reach beyond the capabilities of existing LTE offerings and bring wireless carrier Ethernet to the edge of the network”.
Texas mergers and acquisitions
Generally speaking, a merger is the combining of one or more business entities into one single entity. One particular way in which businesses can merge is by way of a statutory merger, which would be governed by state law.
Acquisitions in the business world happen whenever a company buys all or most of a company’s ownership stake in an effort to gain control over the purchased entity, just as in the case of Infrastructure Networks and YR20’s transaction.
Following through with the merger or acquisition
Being able to buy or merge with a company might be a dream for many established business owners, particularly since completion of such an action will mean that there’s one less competitor in the marketplace. Still, business owners who are thinking about merging with or acquiring another business should keep several things in mind in order to be successful. The parties should undertake to:
- Make sure that any transactional documents and/or sales agreements that have been drafted have been thoroughly reviewed and that great attention to detail has been given to all clauses of those documents.
- Ensure that the business’ assets remain secure and protected, particularly when there could be an issue involving the divulgence of trade secrets and other types of confidential business information.
- Try to minimize the obstacles that can arise, even though there will probably be challenges to contend with during the changeover process.
Some business owners may not know how to go about taking the steps to buy or merge with another business, but there is help available for those who seek it. Skilled merger and acquisition attorneys can help business owners attain their goals of buying out the competition and increasing their market share.