Otelco snaps up cloud provider Reliable Networks
Otelco, a competitive telco serving various Northeast and Southern U.S. states, boosted its service capabilities by acquiring Maine-based cloud hosting and managed provider Reliable Networks.
The combined company will expand Otelco's existing offerings to support VoIP, e-mail, database and vertical industry software applications.
Neither company is a stranger to one another. Otelco has worked with Reliable Networks to fulfill customer requests for VoIP network deployments.
"Leveraging the networking and application hosting expertise of Reliable Networks by acquiring the company is a natural, evolutionary extension of our current product and services offerings to support the substantial growth of our Hosted IP Voice PBX Product," said Mike Weaver, CEO of Otelco, in a press release announcing the deal.
Under the terms of the agreement, Otelco paid $500,000 for Reliable Networks. Otelco said that the balance of the purchase price will be paid in stock over the next three years with Reliable Networks having to meet certain financial objectives.
Reliable will operate as a division of OTT Communications, Otelco's New England competitive operating entity.
- see the release
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