Conversent snaps up REON
When times are tough, it is often the strong that reap the rewards. Case in point, facilities-based communications provider Conversent Communications has snatched up struggling REON Broadband Corp.
REON went full throttle into the in-building broadband service sector a couple of years ago, but then the market went soft. Enter Conversent. The company has acquired REON for an undisclosed sum of Conversent stock. The deal is designed to grow Conversent customer base, which includes 30,000 businesses from Maine to New Jersey.
REON doles out high-speed Internet access services to roughly 150 buildings in New England. The decision to purchase REON seemed natural, because the company already uses Conversent's network for long-haul data access.
As part of the deal, Conversent has received a $9 million investment from REON's financial partners, Seaport Capital and BancBoston. The equity investment will be used to fund future growth of Conversent's network and customer base.