By Kimberley Donoghue PBN Web Editor Twitter: @kdonog
MIDDLETOWN – Towerstream Corp. said Monday it has acquired “certain assets” from California-based Color Broadband Communications Inc. but declined to say how much the deal was worth.
The 4G service provider said it has agreed to acquire “all customer contracts, network infrastructure, and related assets.” A spokesman did not immediately return a request for details on how many contracts there were and what the infrastructure and assets were.
However, the company did say the acquisition will increase its Los Angeles market customer base by 60 percent; the annual revenue base by about 70 percent, and its network coverage area by about 20 percent.
“Our California market has been growing rapidly over the past few years and this transaction will accelerate that growth even further,” said Towerstream CFO Joseph Hernon. “This acquisition will be immediately accretive to Towerstream and embodies our focus on opportunities that match our business model and enhance shareholder value.”
It is the fourth acquisition for the company since April 2010 and its largest to date, it said.
“Color Broadband is one of the largest wireless Internet services providers in California,” said Towerstream CEO and President Jeff Thompson. “We are excited about integrating Color Broadband’s Points of Presence into our network and the opportunity to aggressively build our customer base in the expanded network coverage area.”
The deal, consisting of cash, common stock and assumed obligations, is expected to close by the end of 2011.