Denver-based IPtimize Inc. plans to buy CLEC WTI LLC in a move it expects will boost revenue and subscriber counts.
Terms of the deal were not disclosed, even though IPtimize is a publicly traded company. However, it trades on the Pink Sheets market, a system comprised of companies that dont have to meet any listings requirements. That means they arent required to file periodic reports or audited financial statements with the Securities and Exchange Commission, so investors have to take such companies at their word when it comes to valuation and income.
The broadband voice and data service provider did say it will fund the acquisition with cash and restricted common stock. WTI operates in Washington and Oregon.
WTI serves approximately 8,200 customers; that would bump up IPtimizes subscriber base from 250 to 8,445. IPtimizes services target SMBs, allowing them to implement VoIP without having to fund large capital outlays.
WTI reported approximately $7 million in revenue for 2006, according to IPtimize. The 2007 number should reach $8 million, which could increase IPtimizes revenue run-rate from $1 million to $9 million.
IPtimize executives said the WTI transaction is just the start.
As a public company with increasingly national presence and economies of scale, IPtimize seeks to purchase regional providers to rapidly grow revenue and achieve multiples consistent with our comparable peer group, said Clint Wilson, president of IPtimize.
IPtimize stocks closed at 35 cents per share on Tuesday. The companys 52-week high stands at 40 cents, its 52-week low at 5 cents.