Broadweave Networks, a South Jordan, Utah-based fiber-optic service provider, has agreed to merger with local CLEC Veracity Communications. No financial terms were disclosed. Broadweave last year had agreed to a $40.6 million investment from Soronson Capital, but the transaction ultimately did not occur.
Broadweave Networks and Veracity Communications today announced a merger of the two companies to form Veracity Networks, a premier, local, provider of telecommunications services. The combined companies will continue to serve more than 20,000 customers in Utah, while opening the doors to new customers eager to enjoy the benefits of fiber optic services. Veracity Networks will combine superior customer service with advanced technology platforms and a powerful fiber optic network to deliver the best in Internet, phone, and video services to local customers.
“By joining forces to create Veracity Networks, we have a significant opportunity to grow the business while providing customers with leading edge technologies,” said Dave Moon, CEO of Broadweave Networks. “In addition, we are keeping the business local so the combined workforce of nearly 100 employees will continue to focus on providing the best possible customer service and care.”
“It is important to customers to have a strong, local, provider that lives and works in their community – this means more dollars and jobs for our local economy and is critical in delivering First Class Service,” said Drew Peterson, CEO of Veracity Communications. “By understanding the local issues and needs, Veracity Networks will be far more responsive than any national provider.”
Broadweave Networks and Veracity Communications have experienced tremendous growth in customers and revenues over the past year, but with growth comes capital needs for infrastructure, equipment and new customer installs. By joining forces, both companies will be able to realize economies of scale to reduce costs and make it possible to expand more quickly.
“We are excited at the proposed opportunities and benefits that Veracity Networks will provide our business,” said Dave Elkington, CEO of Insidesales.com, a Veracity customer. “We look forward to building our business with the same great products and services we have always enjoyed.”
Because of the merger, customers of both companies will enjoy the benefit of a broader array of voice services, Internet connectivity, video services and customer service. Both companies bring important technology skills and expertise that together will create a more complete product offering. Because Veracity Networks will remain a local provider, the only change that customers will notice is the new company name on their bills. Veracity Networks is now positioned to grow the local network, expand its products, and deliver greater service to both business and residential customers.
Veracity Networks will combine leadership talent from both companies, with continued involvement from Broadweave’s existing Board of Directors and the proven leadership of Drew Peterson as the CEO of the new company. Completion of the merger is expected to occur promptly following necessary approvals from regulatory and government entities.
About Broadweave Networks
Broadweave Networks (www.broadweave.com) delivers high-speed Internet, TV, and phone services to both residential and commercial customers via Fiber-To-The-Premises (FTTP) networks. The company couples its technically advanced communications services with local, friendly, and accessible customer service to save its customers both time and money while they enjoy unmatched Internet speed, high-definition video, and feature-rich telephone services. Broadweave is currently providing services in Provo, Traverse Mountain, and Sienna Hills, Utah. Broadweave also delivers commercial data and telephony services to small and mid-size businesses and enterprises, and recently introduced its new Voice over IP (VOIP) suite of Go Big! Instant Office Tools for small and home office users.
About Veracity Communications
Veracity Communications (www.veracitycom.net) is a CLEC that was formed in 2002 by three partners with 50 years combined experience in the telecommunication industry. They were all tired of the un-kept promises, hidden fees, surcharges and other negative traits that plague so many companies in the industry. The need was recognized for a company that truly values the small and medium-sized businesses. By combining an existing company, Off-Campus Telecommunications, with an energetic sales force, a top notch network and a caring customer service team, Veracity Communications was born in Provo, Utah. Organically grown and privately held since the beginning, Veracity Communications understands that in order to be successful our customers have to be satisfied.