Anterix Announces Industry Engagement Initiative to Accelerate Private Wireless Broadband Opportunity and Engages Morgan Stanley to Initiate Strategic Review Process
Rhea-AI Summary
Anterix (NASDAQ: ATEX) has announced two major initiatives: engaging Morgan Stanley for a strategic review process following inbound interest in the company, and launching an industry engagement initiative to accelerate private wireless broadband deployment for utilities. The new initiative aims to review pricing, payment, and ownership terms, while exploring collaboration opportunities with strategic partners within Anterix's 120+ member ecosystem.
As the leading provider of private wireless broadband solutions for utilities, Anterix currently serves seven customers across fifteen states. The company, which maintains zero debt, will work with Morgan Stanley to evaluate strategic opportunities that benefit shareholders, customers, and employees. The timeline for the strategic review process remains open-ended, with no guaranteed outcomes.
Positive
- Received strategic interest from potential buyers/partners
- Zero debt position
- Established customer base across 15 states
- Large ecosystem of 120+ members
- Market leadership in utility private wireless broadband
Negative
- None.
Insights
The announcement of Morgan Stanley's engagement for a strategic review marks a pivotal moment for Anterix, particularly following inbound strategic interest. This development carries significant weight given Anterix's unique position as the leading provider of 900 MHz spectrum for private wireless networks in the utility sector, with seven customers across fifteen states and a 120+ member ecosystem.
The strategic review's timing is particularly noteworthy, coinciding with the utility sector's accelerating digital transformation and increasing demand for private wireless solutions. The company's zero debt position and established customer base make it an especially attractive target for potential strategic transactions, whether through outright acquisition, strategic partnership, or other value-creating alternatives.
The parallel announcement of an industry engagement initiative focused on pricing, payment terms and ownership structures suggests management is pursuing a dual-track strategy. This approach typically aims to maximize shareholder value by creating competitive tension between potential strategic alternatives while simultaneously enhancing organic growth prospects.
Critical factors that could influence the outcome include:
- The scarcity value of Anterix's spectrum assets in the 900 MHz band
- The company's first-mover advantage in the utility sector
- The growing strategic importance of private wireless networks for critical infrastructure
- The potential for accelerated market adoption through revised commercial terms
The engagement of Morgan Stanley, a top-tier investment bank with significant expertise in telecommunications and utility sectors, suggests the company is preparing for a comprehensive evaluation of strategic alternatives that could include a potential sale, strategic partnership, or other significant corporate transactions.
WOODLAND PARK, N.J., Feb. 11, 2025 (GLOBE NEWSWIRE) -- Anterix (NASDAQ: ATEX) announced today that after receiving inbound interest in the Company, it has engaged Morgan Stanley & Co. LLC (“Morgan Stanley”) as its financial advisor to support a formal strategic review process for the Company to capitalize on the growing demand and urgency for private wireless broadband solutions for the utility industry.
Additionally, as the recognized market leader in the private wireless broadband space for utilities, Anterix has launched a new industry engagement initiative to address and shorten the time to realization of value for Anterix and its customers to allow them to more quickly deploy 900 MHz private wireless broadband networks. This initiative, which will include a significant review of pricing, payment and ownership terms as well as the potential for collaboration with strategic partners on additional products and services with Anterix’s 120+ member ecosystem, is already receiving significant interest from utilities.
“Anterix has more experience regarding how to enable private networks for utilities than anyone. With this new initiative, we are going to aggressively evolve our product offering to build on that success. With our seven customers across fifteen states, our 120+ member ecosystem, and our fantastic team, we are poised to continue to capture the growing utility wireless broadband marketplace,” said Scott Lang, President & CEO of Anterix.
Mr. Lang continued, “As the leading provider of private wireless broadband, zero debt, and a strong customer pipeline, it does not surprise us that we have had some inbound strategic interest to participate with us in our efforts. Accordingly, we have turned to the leaders in this field, Morgan Stanley. With them, we will review strategic opportunities to capitalize on the value that lies in front of us, with a focus on what is in the best interest of our shareholders, customers and employees. I am excited to work with Morgan Stanley on this strategic review and equally excited to see the extensive utility interest in the evolution of our product offering.”
As a reminder, Anterix previously announced that it will be hosting its third quarter fiscal 2025 earnings call tomorrow, Wednesday February 12, 2025, at 9:00 A.M. ET. More information can be found on the Investor Relations section of Anterix’s website at https://investors.anterix.com/events-presentations.
There is no deadline or definitive timetable for completion of the strategic review, and there can be no assurance regarding the results or the outcome of this review. Anterix does not intend to make any further announcements regarding the strategic review except in accordance with its ongoing disclosure obligations and pursuant to applicable laws and regulations.
Shareholder Contact
Natasha Vecchiarelli
Vice President, Investor Relations & Corporate Communications
Anterix
973-531-4397
nvecchiarelli@anterix.com
About Anterix
At Anterix, we partner with leading utilities and technology companies to harness the power of 900 MHz broadband for modernized grid solutions. Leading an ecosystem of more than 100 members, we offer utility-first solutions to modernize the grid and solve the challenges that utilities are facing today. As the largest holder of licensed spectrum in the 900 MHz band (896-901/935-940 MHz) throughout the contiguous United States, plus Alaska, Hawaii, and Puerto Rico, we are uniquely positioned to enable private wireless broadband solutions that support cutting-edge advanced communications capabilities for a cleaner, safer, and more secure energy future. To learn more and join the 900 MHz movement, please visit www.anterix.com.
Forward-Looking Statements
Certain statements contained in this press release constitute forward-looking statements within the meaning of the federal securities laws that involve risks and uncertainties. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future events or achievements such as statements in this press release related to Anterix’s industry engagement initiatives or strategic review or business or financial results or outlook. Actual events or results may differ materially from those contemplated in this press release. Forward-looking statements speak only as of the date they are made and readers are cautioned not to put undue reliance on such statements, as they are subject to a number of risks and uncertainties that could cause Anterix’s actual future results to differ materially from results indicated in the forward-looking statement. Such statements are based on assumptions that could cause actual results to differ materially from those in the forward-looking statements, including: (i) the timing of payments under customer agreements; (ii) Anterix’s ability to clear the 900 MHz Broadband Spectrum on a timely basis and on commercially reasonable terms; (iii) Anterix’s ability to qualify for and timely secure broadband licenses; (iv) Anterix’s ability to execute on its industry engagement initiatives; (v) the timing and outcome of Anterix’s strategic review process; (vi) whether Anterix will be able to identify, develop or execute on any actions as a result of its strategic review process and (vii) competition in the market for spectrum and spectrum solutions offered by Anterix. Actual events or results may differ materially from those contemplated in this press release. Anterix’s filings with the Securities and Exchange Commission (“SEC”), which you may obtain for free at the SEC’s website at http://www.sec.gov, discuss some of the important risk factors that may affect the Company’s financial outlook, business, results of operations and financial condition. Anterix undertakes no obligation to update publicly or revise any forward-looking statements contained herein.
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