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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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