M&A in the IP communications world is picking up, as two different activities take place this month within the broadband space.
On May 21, wireless business broadband provider Sparkplug Communications (www.sparkplug.net) picked up assets from MetroBridge Networks. Scottsdale, Arizona-based Sparkplug is acquiring certain MetroBridge assets, including all of its Phoenix Arizona operations – customer contracts, network infrastructure, the works. Sparkplug says the acquisition will contribute immediate positive EBITDA to the company and provide deeper coverage in Mesa and South Phoenix, increasing its POPs in the area by 33 percent and growing its customer base by 13 percent.
(It does beg the question as to why Vancouver-based MetroBridge ended up in Arizona, but if you look at the company’s stock price today, well…)
Sparkplug recently divested its assets in Chicago and Nashville as a part of remaking itself inot a strong regional player. Sparkplug provides enterprise wireless broadband, hosted VoIP, IP trunking, and various service bundles.
In the second deal, Lightower Fiber Networks is purchasing Veroxity Technology partners. Lightower is a metro fiber network/bandwidth provider based in Boxborough, MA while fiber-data-internet Veroxity is HQ’ed in Westford, MA.
With the acquisition of Veroxity, Lightower gets a bigger fiber footprint and customer base in the Boston metro area, increases its network facilities throughout New England and New York City, and adds a national long haul network connecting major cities across the U.S. The Veroxity network will add over 2,000 network route miles to Lightower’s current 4,500 network route miles and will also increase Lightower’s fiber connectivity into major data centers and key commercial buildings throughout the region.
Lightower’s current network is comprised of over 4,500 route miles of fiber throughout Massachusetts, New Hampshire, Rhode Island, Connecticut, New Jersey, and New York including New York City. The Veroxity network includes 2,000 route miles of fiber throughout Massachusetts, Rhode Island, Connecticut and New York.
Terms of the deal were not disclosed. The transaction is subject to regulatory approval and is expected to close in Q3 2010.