Otelco Inc. (NASDAQ: OTEL), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia, today announced it has acquired Maine-based Reliable Networks, a provider of cloud hosting and managed services for companies who rely on mission-critical applications. The combination expands Otelco’s existing carrier-grade service offerings to support critical VoIP, email, database and industry vertical software applications.
“Our business customers increasingly are turning to us to expand our hosting and managed services capabilities to be able to provide seamless, turnkey services anchored by our high-quality connectivity offerings,” said Mike Weaver, CEO of Otelco. “Over the years, we have successfully collaborated with Reliable Networks on larger, more complex VoIP telephone infrastructure deployments. Leveraging the networking and application hosting expertise of Reliable Networks by acquiring the company is a natural, evolutionary extension of our current product and services offerings to support the substantial growth of our Hosted IP Voice PBX Product.”
“We have always focused on clients who demand superior quality and high levels of client service,” noted Mark Stone, Managing Member and founder of Reliable Networks. “As a high value-added provider, our ‘measure twice, cut once’ approach resonates with clients for whom downtime is expensive and disruptive. What could be better than to formalize a relationship with a company that also provides carrier-grade services complementing our own, and with whom we have successfully worked in the past?”
Otelco paid $500,000 at the closing of the acquisition. The balance of the purchase price will be paid in stock over the next three years, contingent on Reliable Networks achieving certain financial objectives. The acquisition will provide Otelco with additional managed service capabilities that will supplement the growth of existing IP services while expanding its current market presence. Reliable Networks will operate as a division of OTT Communications, Otelco’s New England competitive operating entity.