Boingo Wireless Inc (NASDAQ: WIFI) shares rose Thursday after reporting a second-quarter earnings beat. Boingo Wireless also announced the purchase of Elauwit Networks for $28 million in cash.
The Los Angeles-based Boingo, the DAS and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, announced Wednesday of the purchase of that it has agreed to acquire Elauwit.
The purchase agreement also provides for contingent earn-out cash consideration for up to an additional $15.0 million based on the achievement of certain revenue targets for the acquired business following the closing of the acquisition during the 2018, 2019 and 2020 fiscal years.
Headquartered in Charleston, South Carolina, Elauwit provides high-speed Wi-Fi to 220 student housing and multifamily properties across the United States. Elauwit’s expertise in installing and operating Wi-Fi networks and services is highly complementary to Boingo’s military broadband product, both in terms of technology, infrastructure and the demographic served.
Said CEO David Hagan, "We are thrilled to welcome the Elauwit team to the Boingo family and to jumpstart our entry into the rapidly growing multifamily space.
"The acquisition aligns well with our strategy of securing long-term wireless rights at venues, building state of the art networks at these venues and monetizing those networks through our unique suite of products and services."
Boingo Wireless connects customers at airports, stadiums, military bases, convention centers, and commercial properties.
Shares in Boingo began Thursday up $6.85, or 29.5% to $30.07
