Otelco (NASDAQ: OTEL), a wireline telecommunications services provider in Alabama, Maine, Massachusetts, Missouri, New Hampshire, Vermont and West Virginia, has acquired Reliable Networks of Maine, LLC, a provider of cloud hosting and managed hosting services for companies who rely on mission-critical applications.
Over the years, Otelco has collaborated with Reliable Networks on larger, more complex VoIP telephone infrastructure deployments. Leveraging the networking and application managed hosting expertise of Reliable Networks by acquiring the company would be a natural, evolutionary extension of Otelco’s current product and services offerings to support the growth of its Hosted IP Voice PBX Product.
Division of OTT Communications
Otelco paid $500,000 at the closing of the acquisition. The balance of the purchase price will be paid in stock over the next three years, contingent on Reliable Networks achieving certain financial objectives. The acquisition will provide Otelco with additional managed hosting service capabilities that will supplement the growth of existing IP services while expanding its current market presence. Reliable Networks will operate as a division of OTT Communications, Otelco’s New England competitive operating entity.
With approximately 96,000 voice and data access lines, Otelco is among the top 25 largest local exchange carriers in the United States based on number of access lines. Reliable Networks of Maine, LLC, provides technology consulting, managed hosting services and private/hybrid cloud hosting across the United States.