Nov 3, 2008 : Sitestar Buys DONOBi Assets
📅 - Internet solutions provider Sitestar (sitestar.net) announced on Monday it has purchased the Internet related assets of DONOBi Internet Services (donobi.com), which offers dial-up, DSL, high-speed fiber optic Internet, web hosting and colocation services.
The deal marks the company's sixth acquistion this year, having already acquired the dial-up and hosting customers and other assets of Oklahoma-based Internet service provider AdaNet in June, the DSL accounts and related assets from USA Telephone and modem dial solutions provider Dial Assurance in May, the Internet access customer base and assets of N2 The Net in April, and the assets of Internet service and hosting provider Comcation in March.
These acquisitions have all helped Sitestar to expand its growing customer base, gain new revenue streams, and generate new partnership deals with ISPs. With the DONOBi acquistion, Sitestar has now completed acquisitions in each quarter this fiscal year - a first for the company.
By acquiring DONOBi Internet Services, Sitestar is now able to expand into the Fiber optic Internet services market.
Fiber optic Internet services offers an alternative to broadband services allows for the delivery of high speeds and bandwidth, and is significantly affordable when compared to cable, DSL and wireless. Additionally, the medium is ideally suited to support services such as voice over IP and Internet Protocol TV.
"The DONOBi transaction includes an attractive mix of high-profit, 'sticky' residential and business customers and a compelling choice of broadband solutions that we can promote to win new customers or offer to existing customers who require faster connectivity," says Frank R. Erhartic, Jr., CEO for Sitestar. "We are particularly enthusiastic about the fiber service because it is growable, has minimal customer churn and the PUD is currently increasing the fiber optic network footprint. Plus, fiber is the perfect conduit to deliver additional recurring revenue service opportunities like VoIP or IPTV, whose viability we are investigating."
The company says it expects the acquisition to be a "smooth and seamless transition," with plans to consolidate infrastructure from its existing regional customer base to cut down on operating expenses.
Sitestar says it provides consumer and business-grade Internet access, wholesale managed modem services for downstream ISPs and web hosting to customers throughout the US and Canada.
The deal marks the company's sixth acquistion this year, having already acquired the dial-up and hosting customers and other assets of Oklahoma-based Internet service provider AdaNet in June, the DSL accounts and related assets from USA Telephone and modem dial solutions provider Dial Assurance in May, the Internet access customer base and assets of N2 The Net in April, and the assets of Internet service and hosting provider Comcation in March.
These acquisitions have all helped Sitestar to expand its growing customer base, gain new revenue streams, and generate new partnership deals with ISPs. With the DONOBi acquistion, Sitestar has now completed acquisitions in each quarter this fiscal year - a first for the company.
By acquiring DONOBi Internet Services, Sitestar is now able to expand into the Fiber optic Internet services market.
Fiber optic Internet services offers an alternative to broadband services allows for the delivery of high speeds and bandwidth, and is significantly affordable when compared to cable, DSL and wireless. Additionally, the medium is ideally suited to support services such as voice over IP and Internet Protocol TV.
"The DONOBi transaction includes an attractive mix of high-profit, 'sticky' residential and business customers and a compelling choice of broadband solutions that we can promote to win new customers or offer to existing customers who require faster connectivity," says Frank R. Erhartic, Jr., CEO for Sitestar. "We are particularly enthusiastic about the fiber service because it is growable, has minimal customer churn and the PUD is currently increasing the fiber optic network footprint. Plus, fiber is the perfect conduit to deliver additional recurring revenue service opportunities like VoIP or IPTV, whose viability we are investigating."
The company says it expects the acquisition to be a "smooth and seamless transition," with plans to consolidate infrastructure from its existing regional customer base to cut down on operating expenses.
Sitestar says it provides consumer and business-grade Internet access, wholesale managed modem services for downstream ISPs and web hosting to customers throughout the US and Canada.
Reads: 1724 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/110308_Sitestar_Buys_DONOBi_Assets.cfm
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