The U.S. retail giant Walmart will buy Alamo Technologies, a leading manufacturer of indoor antenna systems, for $50.2 million in cash, including options to buy additional assets, the company announced Wednesday.
Walmart is also expected to pay $4.9 million in debt for Alamo, according to the announcement.
Alamo was founded in 2000 by Michael Tinsley and Richard B. Sonderman, and has manufacturing facilities in Arizona, Indiana, Kansas and Louisiana.
Alamo Technologies manufactures indoor antenna arrays for residential and commercial use, including in the Los Angeles area, San Francisco and Miami.
It has received hundreds of thousands of dollars in contracts for outdoor antennas in the U.K., Australia and South Africa.
Alamos indoor antennas were sold in 2017.
Alamos most recent acquisition is for about $5 million.
Walmart has been shopping Alamo’s technology for some time, said Alamo CEO Mark F. Schmitt.
“This is a great acquisition for our company, for the industry and for Walmart,” he said.
Alamo was formed in 2000 and has production facilities in Phoenix, Texas, and Albuquerque, New Mexico. “
Alamo has an unparalleled track record of delivering quality products and technology to our customers, and our goal is to ensure the Alamo network continues to grow, benefiting our shareholders.”
Alamo was formed in 2000 and has production facilities in Phoenix, Texas, and Albuquerque, New Mexico.
Alamias most recent deal comes as Walmart is expanding its global footprint.
Walmart is buying more than 30 stores in the United States, with another five locations planned in Canada.
The deal is expected to close by the end of the year.
The company has about 3,500 employees worldwide and employs more than 4,000 people worldwide.
Walmart said Alamosa’s technology will be used in the company’s U-Verse, U-Pass, AlamoPass and AlamoServe networks.
Alams products include AlamoTek products, Alamax products and other accessories.
Alamas technology is used in Walmart’s Prime Now mobile ordering and delivery services, its mobile shopping service and in Alamo Pay and Alamo loyalty programs.
Alamaras latest acquisition comes as other companies are pursuing a similar strategy in the business of installing antenna systems.
Amazon has said it is working with companies to build a network of antennas that will help customers avoid the time and expense of installing and maintaining indoor antennas.
Walmart, which has also invested in wireless home antennas, said it also is considering such a strategy.