Tucows Makes a Bid for a Vermont Telecom
In late September, Tucows Inc. (NASDAQ: TCX) announced that it had submitted a $28.8 million bid to acquire the Burlington Telecom (BT) fiber network in Burlington, Vt. Though it would pale in comparison to Tucows' $83.5 million acquisition of domain provider Enom earlier in 2017, this could still be an important addition to the company's nascent Ting Internet division as it seeks to add to its growing list of "Ting towns" -- which currently includes Charlottesville, Virginia; Westminster, Maryland; Holly Springs, North Carolina; Sandpoint, Idaho; and Centennial, Colorado.
Tucows' offer includes $27.5 million in cash, an additional $0.5 million if certain EBITDA targets are reached, and estimated costs of $0.8 million to relocate BT's data center. BT has around 5,800 current subscribers and is available to roughly 16,000 residences. While that may sound like small potatoes, consider that Ting's current plans for its first five fiber towns will provide around 85,000 total serviceable addresses. So a BT acquisition would provide growth in serviceable addresses of around 19%.
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Source: Fool.com
