Thursday, April 15, 2010

Towerstream Acquires Sparkplug's Chicago and Nashville Businesses

Towerstream has acquired Sparkplug Communications' Chicago, Illinois and Nashville, Tennessee business assets. The acquisition expands Towerstream's presence in Chicago, introduces Nashville as the company's 11th market nationally, and will add approximately $1.3 million to the annual revenue base. The Company purchased all customer contracts, network infrastructure, and related assets in a transaction valued at $1.6 million in cash and common stock.

"Our ability to quickly close this transaction will enable us to begin recognizing revenues generated from the acquired customer base," stated Jeff Thompson, President and Chief Executive Officer. "We have designed a plan to quickly integrate Sparkplug's ten Points of Presence (PoPs) in Chicago into our existing network. We plan to leverage our expanded market coverage to increase our scale and accelerate growth of our high margin recurring business."