Broadweave Networks to Acquire Veracity Communications
Acquisition Marks Next Step in Provo, Utah’s Sale of the iProvo Network to Leading Fiber-to-the-Premise (FTTP) Provider
As a continued step in the purchase of the iProvo fiber-optic network, the largest municipally owned fiber-to-the-home (FTTH) network in the U.S., Broadweave Networks and Veracity Communications today announced an agreement in which Broadweave will acquire Veracity in a cash and stock transaction. Under the terms of the acquisition, Broadweave and Veracity will merge operations and combine companies. Two principals of Veracity will join Broadweave’s executive ranks. Kevin Mayberry joins Broadweave’s board of directors and Drew Peterson will become Broadweave’s Chief Sales Officer, executives of the two companies disclosed.
Backed by Utah investment firms Sorenson Capital and EsNet Group, Broadweave has agreed to purchase the iProvo fiber-optic network for $40.6 Million and believes that Veracity will be a critical part of the success of that venture.
“Veracity offers skills and abilities that are integral to the long-term success of our company,” said Steve Christensen, Broadweave’s CEO. “They’ve done a terrific job of selling and delivering quality services to businesses in Utah.”
When Broadweave made the decision to purchase the iProvo network, we realized the network was not reaching its true potential for achieving a high take rate among business customers, Christensen noted. Broadweave set out to address that issue and discovered Veracity in that process.
“Drew Peterson and Kevin Mayberry (CEO and owner, respectively) have built a fantastic team at Veracity and have established a strong client base among Utah businesses,” Christensen said. “They have a real passion and talent for selling. I’ve rarely ever seen a company that cares as much about their business customers.”
Veracity delivers voice and data services over Utah’s iProvo network and over Qwest’s network. Veracity’s clients include notables such as Brigham Young University, Mountain America Credit Union, and RC Willey. Veracity is rare among service providers on the iProvo network because the company is cash flow positive and is growing at an annual rate of about 200 percent.
Drew Peterson said, “We looked at Broadweave’s stellar team, financial backing, and technical expertise, and realized that together we could build a better solution for our customers.”
Fraser Bullock, one of Broadweave’s board of directors, stated, “This acquisition underscores Broadweave’s commitment to invest in the critical elements of the business that will ultimately turn the iProvo network into a positive experience for residents and businesses.”
The combined companies will serve businesses and residents on the iProvo network and more broadly as the company expands to new markets.
About Broadweave Networks
Broadweave Networks (http://www.broadweave.com) delivers its “Triple-Weave” suite of voice, video, and data services via the Company’s own Fiber-To-The-Premises (FTTP) networks. Until recently, Broadweave has focused on deploying its fiber networks in new planned communities. Broadweave’s acquisition of the iProvo network expands the company’s footprint. Broadweave also delivers data services, commercial telephony, and hosted Voice over IP (VOIP) communications services to small to mid-size businesses and enterprises.
About Veracity Communications
Veracity Communications (http://www.veracitycom.net) is one of the largest providers of voice and data services to businesses in Utah and one of the most prominent alternatives to the incumbent providers. Veracity also provides branded wholesale Voice over IP (VoIP) services across the country. Since its inception, Veracity has achieved a 200% annual growth rate.