IBJNews

Omnicity continues wireless broadband acquisition spree

Back to TopCommentsE-mailPrintBookmark and Share

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. 


 

ADVERTISEMENT

  • 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

    Post a comment to this story

    COMMENTS POLICY
    We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
     
    You are legally responsible for what you post and your anonymity is not guaranteed.
     
    Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
     
    No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
     
    We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
     

    Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

    Sponsored by
    ADVERTISEMENT

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    1. to mention the rest of Molly's experience- she served as Communications Director for the Indianapolis Department of Public Works and also did communications for the state. She's incredibly qualified for this role and has a real love for Indianapolis and Indiana. Best of luck to her!

    2. Shall we not demand the same scrutiny for law schools, med schools, heaven forbid, business schools, etc.? How many law school grads are servers? How many business start ups fail and how many business grads get low paying jobs because there are so few high paying positions available? Why does our legislature continue to demean public schools and give taxpayer dollars to charters and private schools, ($171 million last year), rather than investing in our community schools? We are on a course of disaster regarding our public school attitudes unless we change our thinking in a short time.

    3. I agree with the other reader's comment about the chunky tomato soup. I found myself wanting a breadstick to dip into it. It tasted more like a marinara sauce; I couldn't eat it as a soup. In general, I liked the place... but doubt that I'll frequent it once the novelty wears off.

    4. The Indiana toll road used to have some of the cleanest bathrooms you could find on the road. After the lease they went downhill quickly. While not the grossest you'll see, they hover a bit below average. Am not sure if this is indicative of the entire deal or merely a portion of it. But the goals of anyone taking over the lease will always be at odds. The fewer repairs they make, the more money they earn since they have a virtual monopoly on travel from Cleveland to Chicago. So they only comply to satisfy the rules. It's hard to hand public works over to private enterprise. The incentives are misaligned. In true competition, you'd have multiple roads, each build by different companies motivated to make theirs more attractive. Working to attract customers is very different than working to maximize profit on people who have no choice but to choose your road. Of course, we all know two roads would be even more ridiculous.

    5. The State is in a perfect position. The consortium overpaid for leasing the toll road. Good for the State. The money they paid is being used across the State to upgrade roads and bridges and employ people at at time most of the country is scrambling to fund basic repairs. Good for the State. Indiana taxpayers are no longer subsidizing the toll roads to the tune of millions a year as we had for the last 20 years because the legislature did not have the guts to raise tolls. Good for the State. If the consortium fails, they either find another operator, acceptable to the State, to buy them out or the road gets turned back over to the State and we keep the Billions. Good for the State. Pat Bauer is no longer the Majority or Minority Leader of the House. Good for the State. Anyway you look at this, the State received billions of dollars for an assett the taxpayers were subsidizing, the State does not have to pay to maintain the road for 70 years. I am having trouble seeing the downside.

    ADVERTISEMENT