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WFI Poised to Sell Engineering Unit

WFI Inc., formerly called Wireless Facilities Inc., a San Diego-based firm that erects and maintains wireless networks for large telecom carriers, said it signed a definitive agreement May 29 to sell its U.S. Wireless Engineering Business for $46 million to LCC International Inc.

The U.S. engineering unit has about 350 engineers and support staff who are mainly located in Reston, Va. Under the proposed deal, the WFI employees will become employees of LCC, headquartered in McLean, Va.

The assets being sold include all of WFI’s domestic wireless engineering business. WFI will maintain its wireless network deployment business, which deploys third-generation, fourth-generation, WiMax and other wireless networks throughout the United States for major wireless carriers.

WFI said the latest transaction is another milestone in its transformation to achieve long-term growth and profitability, and reduce its bank debt related to an earlier acquisition.

As part of the transaction, WFI would receive $17 million in cash at closing, about $7 million in retained accounts receivable to be collected during the next few months, and the balance of about $22 million to be paid with a subordinated promissory note with a 36-month maturity.

Traded on Nasdaq under the ticker WFII, shares closed at $1.49 on May 29, giving the company a market capitalization of $110 million.

, Mike Allen

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