KeyOn Closes First Acquisition Under Its Rural UniFi Program
OMAHA, Neb. --(Business Wire)-- KeyOn Communications Holdings, Inc. (OTCBB:KEYO), one of the largest providers of wireless broadband, satellite video and voice over Internet protocol (VoIP) services in the United States, announced the closing of its acquisition of the assets of SkyWi, Inc. ("SkyWi") which include network assets and wireless broadband subscribers located in North Central Texas. This acquisition is the company's first under its Rural UniFi program, a comprehensive acquisition initiative announced in September 2009.
"As we complete the first acquisition under the Rural UniFi program, we have begun executing our vision to create a sizable, next-generation rural communications company. Operating in eleven states provides us with the geographic reach that exposes us to many opportunities where we can leverage our existing network footprint and field personnel to generate cost-savings and subscriber growth. SkyWi is a great example of how we are able to derive synergies from adjacent networks. SkyWi's subscriber base and revenues will partially offset losses in those areas we experienced due to the market environment in 2009. Management anticipates that SkyWi will contribute over $300,000 of revenues and approximately $150,000 in EBITDA in 2010," commented Jonathan Snyder, Chief Executive Officer of KeyOn.
Because of the lack of available broadband options, rural markets are often served by independent wireless broadband operators who provide valuable broadband services to their communities. Estimates put the number of independent wireless broadband companies at over 2,000, making the industry quite fragmented. Historically, without available capital, these companies can experience growth challenges as well as inefficient cost structures associated with smaller customer bases. These factors have contributed to the fact that rural markets lag their urban and suburban counterparts in terms of home broadband penetration by over 20 percent (approximately 46% versus 67% broadband penetration for suburban and urban, respectively).
Snyder continued, "We believe that combining similarly situated operators will bring greater scale for the industry resulting in better purchasing power for KeyOn and also an ability to attract significant capital and top-tier technology partners to rural communities. In this way, we can both accelerate rural broadband adoption and expedite the delivery of next-generation services. KeyOn is excited to be at the forefront on this consolidation effort and we expect to announce many more participants in the initiative." Interested wireless broadband operators can visit KeyOn's unique initiative through the Company's website (www.keyon.com/ruralunifi.html) where they can receive more information and begin the qualification process.
About KeyOn Communications Holdings, Inc.
KeyOn Communications Holdings Inc. (OTC BB: KEYO) is one of the largest providers of wireless broadband, satellite and voice over Internet protocol (VoIP) services in the United States, primarily targeting underserved markets with populations generally less than 50,000. KeyOn offers broadband services with VoIP and satellite video services to both residential and business subscribers across 11 Western and Midwestern states. Through a combination of organic growth and acquisitions, KeyOn has expanded its network footprint to reach approximately 50,000 square miles and cover nearly 2,500,000 people as well as small-to-medium businesses. With its successful track record of acquiring companies and growing its core subscriber base, KeyOn is one of the leading wireless broadband companies in the United States. Management intends to drive subscriber growth through additional acquisitions as well as organic growth across the company's expanding footprint by offering bundled services including broadband, video, VoIP and related valuable services such as the Bullseye Club. The company also intends to opportunistically build mobile and/or nomadic WiMAX (News - Alert) networks in and around its market footprint. More information on KeyOn can be found at http://www.keyon.com.
Safe Harbor Statement Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements may include, without limitation, the company's expectations regarding: future financial and operating performance and financial condition; plans, objectives and strategies; product development; industry conditions; the strength of its balance sheet; and liquidity and financing needs. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside of the company's control, which could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please refer to the company's filings with the Securities and Exchange Commission, including the information under the headings "Risk Factors" and "Forward-Looking Statements" in our Form 10-KSB filed on April 15, 2009. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The company undertakes no obligation to update or supplement such forward-looking statements.