Warwick Valley Telephone Co. has entered into an agreement to substantially acquire all of the assets of Alteva L.L.C. for cash and stock with a combined value of about $17 million.
Philadelphia-based Alteva is a cloud-based Unified Communications solutions provider and North America”™s largest enterprise hosted voice over Internet protocol provider.
WVT”™s board of directors and Alteva”™s board of managers have approved the acquisition, which is subject to regulatory approvals. The transaction is expected to close in the third quarter of this year. The transaction will be paid for with approximately $11 million from cash on-hand and $4 million worth of common stock and $2 million in performance-based payments over the next 18 months.
WVT anticipates the acquisition will increase its consolidated revenues by approximately 30 percent on an annual basis, with an even greater percentage improvement in operating cash flow growth. “This is an extraordinary acquisition that will significantly contribute to our strength and momentum in the marketplace, favorably impact our highly skilled workforce and the services delivered to our customers, and, most importantly, support our mission to deliver value to our shareholders,” Duane Albro, president and CEO of WVT, said in a statement.
“We believe we have found a strong partner in Alteva … a well regarded brand, and shared values that will both benefit from and contribute to WVT”™s future success.”
“This acquisition brings together complementary services and allows us to cover all market segments. Alteva and WVT will mutually benefit from each other”™s strengths. Alteva provides enterprise United Communications services through its strong channel partner model while providing superior customer support. This partnership further enables this commitment and is supportive of Alteva”™s values and mission. This will change the Unified Communication Industry,” said David Cuthbert, CEO and President of Alteva.
