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WFI To Sell Wireless Unit in $24M Deal

WFI, formerly known as Wireless Facilities Inc., said July 9 that it arranged the sale of its wireless deployment business to Platinum Equity, a Los Angeles private equity firm, for $24 million.

WFI said the transaction for $18 million in cash at closing and $6 million in future earn-out payments through 2010 includes the Wireless Facilities name. About 450 technical and support staff in locations throughout the United States who are part of the transaction, will be offered employment by the prospective owner, WFI said.

WFI, a designer, builder and operator of wireless telephone networks for telecom carriers, has been in a restructuring mode since the beginning of this year, abandoning that core business. It is now concentrating on providing information technology and engineering services to federal, state and local government agencies.

In May, WFI announced the sale of its engineering unit, with 350 employees, to LCC International, based in McLean, Va., for $46 million.

Eric DeMarco, WFI’s chief executive, said after the completion of the sale of the wireless deployment unit later this month, the remaining operation of WFI is expected to generate $200 million in annual revenue.

WFI hasn’t filed quarterly financial reports since the third quarter of last year because of an internal probe into the granting of stock options. It launched the investigation after the discovery of the fraudulent granting of options and purchase of stock by a former employee and his wife.

For the nine months ended Sept. 30, WFI reported a net loss of $2.3 million on revenue of $254.4 million compared with a net profit of $12.1 million on revenue of $280.5 million for the like period of 2005.

Traded on Nasdaq under WFII, shares closed July 9 at $1.92, and ranged from $1.01 to $2.98 in the last 52 weeks.

, Mike Allen

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