KeyOn Communications Holdings, a provider of wireless broadband, satellite video and voice over internet protocol (VoIP) services in the US, has signed an agreement to acquire the wireless broadband assets of Affinity Wireless Solutions in Iowa and certain RidgeviewTel markets in Illinois.
The acquisitions when closed will make three acquisitions under KeyOn’s Rural UniFi program, an acquisition initiative announced in September 2009. The company anticipates that these acquisitions will provide pro forma revenues of approximately $450,000 and $225,000 of annualised EBITDA.
Earlier, KeyOn said that it had acquired the wireless broadband assets formerly doing business as SkyWi. The acquisitions of Affinity and the RidgeviewTel markets have been similarly structured as asset purchases. Both acquisitions are expected to close at the beginning of 2010.
The company believes that under its ownership, for a full 12 months of operations, these acquisitions, including the results of SkyWi, will contribute approximately $750,000 in revenue and $375,000m in EBITDA.
Jonathan Snyder, CEO of KeyOn, said: “We are talking to many qualified and competent operators across the eleven states in which we operate. These companies provide necessary broadband services in and around communities that are typically unserved or underserved by traditional providers of broadband.
“The rural wireless broadband industry is very fragmented with over 2,000 independent wireless broadband companies in the US. Consequently, we believe that there are many acquisition opportunities that can be completed fairly quickly and, importantly, on an accretive basis.”
