Rushville-based wireless broadband provider Omnicity Corp. has agreed to acquire a smaller operator—Decatur-based USPPP Inc.
It will be Omnicity’s seventh acquisition since going public last February. Terms of the USPPP deal, made public Wednesday, were not disclosed.
Omnicity’s revenue has doubled over the last year, to $617,000 at Oct. 31, according to a filing with the Securities and Exchange Commission. The company posted a net loss of $520,000 during the quarter. By the end of next July, it plans to complete debt and equity offerings totaling $4.7 million as part of its acquisition strategy.
With the addition of USPPP's 34 towers, Omnicity will provide wireless broadband via 240 towers in at least 30 rural counties. The company said it wants to position itself as the “premier consolidator of rural market broadband nationwide.”
Analysts say without some type of scale the business case for rural broadband is difficult.
Omnicity next plans to focus on larger acquisitions and to reach beyond what have primarily been purchases in contiguous markets, said Chief Operating Officer David Bradford.
"Now is the time to reach out a little further and attract some businesses to carry the acquisition strategy out in other regions around the country," Bradford said in a release.
Investors in Omnicity over the years have included Indianapolis-based Schwarz Partners LP, which has holdings in nearly 20 companies including Indianapolis-based trucking firm TransCorr.