Spectrum Global Solutions Inc., a single-source provider of next-generation communications network and professional services to telecommunications and enterprise markets, announced it has formed SVC, Inc., a Delaware corporation, and entered into a definitive agreement to acquire the Telecom Assets Corp., a wholesale network services provider with network footprint and licenses in the Northeast, Texas, and Southeast.
This network carries VoIP and other traffic for other service providers. The purchase will be accomplished through a combination of cash and stock valued at approximately $9 million. The closing is subject to financing and other closing conditions. The business will be managed by SVC under an interim transition services agreement effective immediately.
The acquired assets provide strong recurring revenues and a history of significant profitability, with unlimited potential for scale The new assets and the nearly 200 channel partners will become part of the Overwatch portfolio of recurring revenue services and leverage the combined sales channels of High Wire Networks and Spectrum.
Mark Porter, newly appointed CEO of Spectrum, said, “This transaction presents a unique growth opportunity for the company – a highly profitable recuring revenue stream at approximately $8 million run rate annually and an opportunity to provide immediate tangible value to our shareholders. The network assets and intellectual property we will acquire come at a very favorable valuation and add a platform for additional growth, organically and through acquisition with tremendous growth possibilities.
“TAC’s service provider customer base also represents an opportunity for growth within High Wire’s Overwatch Managed Security marketplace sales channel,” Porter added. “Everything we are working on is about two things- creating lasting value and accelerating our business. We will go faster.”