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Omnicity continues wireless broadband acquisition spree

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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. 


 

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  • Trash heap
    That is where OMCY belongs.

    Good luck Steve Narducci and all of the other WISPs that OMCY screwed! N
  • No Internet
    I started with this company for my home internet then one day we had no internet without anyone telling us it was being shut down. Of course i was in the middle of my college online classes for ivytech.
  • Steve gettng support from Local Business
    It looks like Zig wireless has received funding from Rydmen & Fox, Inc. If Omnicity does not get its act together, Steve may get them out of Anderson and other areas.
    Let's see who wins!
  • Is Omnicity weak?
    Omnicity has been sued by the three companies but it seems like it is not doing much to protect itself. It's funny that Steve Narducci started another company Zigwirelss on July 21,2010 while he was still with Omnicty. It is difficult to comprehend as why Omnicity is not filing a law suit against him while his company is clearly hurting Omnicity but severely undercutting Omnicity.
    Is Omnicity so weak that it does not have ability to protect itself?
    • Legal Action
      Looks like their acquisitions are catching up with them. 2 acquisitions are filing suit against Omnicity for non payment.
      70C01-1008-CC-00410 in Rush County, Indiana.
      case number is 70C01-1009-CC-00437

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    1. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

    2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

    3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

    4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

    5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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