KeyOn Finalizes Acquisition of Wireless Broadband Assets in East Central Texas

KeyOn Communications Holdings, Inc., providers of wireless broadband, satellite video and voice over Internet protocol services in the United States, announced the closing of the acquisition of certain wireless broadband networks and subscribers in East Central Texas from ERF Wireless, Inc.

According to a release, the acquired networks have demonstrated historically consistent earnings and currently generate positive EBITDA. It is expected that KeyOn will receive the benefits of the EBITDA right away. KeyOn currently operates networks in Texas next to some of the networks being acquired and expects to expand its presence around those networks.

Jonathan Snyder, KeyOn's President and Chief Executive Officer, said, "The acquisition of these Texas networks represent a meaningful purchase in terms of subscribers, earnings and EBITDA. With this acquisition, we will not only expand our footprint in Texas now will as well be strengthening our foundation for future growth and acquisitions in this region. Taking everything into account, with cost savings, and the expanded EBITDA that will result due to our overall operational scale, we believe this represents an exceptionally high return on invested capital, then above our internal benchmark."

The ninth acquisition of network assets

This acquisition will represent the ninth acquisition of network assets and subscribers since the inception of Rural UniFi in the fourth quarter of 2009 and is the Company's thirteenth acquisition overall.