American Telemedia Network Inc. of Provo has announced a tentative agreement to purchase an Arizona general contracting company for about $7 million, ATN spokesman Clyde Fredrickson said.
The contracting company is licensed to operate in three Western states, and virtually all of its business involves construction of road and highway projects, Fredrickson said.The name of the target contracting company was not disclosed, he said. But the company earned before-tax profits of approximately $1.9 million on revenues of approximately $15 million during the first 10 months of 1988.
ATN and the Arizona company "have entered into an agreement with respect to this purchase," he said. "We have a signed agreement, but we're still considering whether it will go through."
The close of the proposed transaction is subject to "several conditions," he said. If the purchase does go through, ATN expects the transaction to be completed during first quarter of 1989.
The takeover conditions, Fredrickson said, "will not be disclosed at this point."
ATN anticipates the purchase price to be approximately $7 million. A portion will be financed through a third party, and a portion will be paid by ATN in the form of a five-year promissory note at 10 percent annual interest and through anticipated stock warrants.
The 3-year-old Utah company "recently" solds its satellite communications business, Fredrickson said. ATN "has some personnel," he said, who have been involved in general contracting construction.