Towersteam, a leading fixed WiMAX service provider in the U.S., just announced that it has entered into a definitive agreement with Sparkplug to acquire certain business assets in a transaction that is valued at $1.6 million in cash and common stock. The terms of agreement state that Towerstream will acquire Sparkplug Communications business assets operating in Chicago, Illinois and Nashville, Tennessee including all customer contracts, network infrastructure, and related assets. Towerstream representatives have stated that the acquisition closing is subject to customary conditions and expected to close by the end of the second quarter of this year.
For Towersteam, this means three main things. First off, based on this acquisition, Chicago will become Towerstream’s third largest market with the transaction increasing the market’s customer base by approximately 150 percent, the annual revenue base by approximately $1.3 million, and the network coverage area by roughly 45 percent. Secondly, Nashville will become the company’s 11th market nationally. Finally, this is Towerstream’s first acquisition in company history, reflecting the company’s philosophy to only seek opportunities that match the business model and enhance shareholder value.
“We have been working diligently to identify acquisition opportunities which not only increase our scale but integrate with our focus on high-margin monthly recurring business,” said President and Chief Executive Officer Jeff Thompson. “Sparkplug Communications was an ideal match for us with its strong base of satisfied customers and attractive infrastructure. We are excited about integrating Sparkplug’s ten Points of Presence (PoPs) into our network and the significant number of new customer opportunities resulting from out expanded market coverage.”
The video accompanying this release is available at www.globenewsroom.com.
Photo courtesy of MPBecker via Flickr
