RUSHVILLE, Ind., July 21, 2010 (GLOBE NEWSWIRE) -- Omnicity Corp (OTCBB:OMCY), the Midwest's largest and fastest growing fixed wireless broadband service provider, has agreed to acquire the Motorola Canopy wireless network assets and subscribers of RAA Services based in Columbiana County, Ohio. The addition of RAA Services adds 10 towers passing more than 32,000 households and furthers the existing partnership with the Columbiana County Port Authority (CCPA) to make use of its fiber optic network throughout the county. Omnicity CEO, Greg Jarman, commented, "RAA Services gives us feet on the ground in Columbiana County Ohio to further our expansion into Eastern Ohio and build out the surrounding counties. We welcome its customers and look forward to making use of CCPA's infrastructure and fiber optic network to support our fixed wireless network."
Omnicity partnered with the CCPA earlier this year and created a revenue sharing plan that makes use of over 50 miles of its fiber optic ring and office space in the Leetonia Industrial Park. With the addition of RAA Services, Omnicity will begin to deploy its services throughout the rest of Columbiana, Carroll, Harrison, Jefferson and Mahoning Counties in eastern Ohio. Scott Dunn, owner of RAA Services, added, "I have many years of experience in the industry and look forward to joining the Omnicity family to be able to service many more rural homes with broadband services. The Omnicity business model is proving to be the premier consolidator of rural Internet providers like myself and I believe in their plan and want to be a part of the Omnicity team."
RAA will be Omnicity's third acquisition in Ohio in the past three months, coming on the heels of the purchase of the assets of Lightspeed Wireless and Bright Choice, Inc. These two acquisitions put Omnicity over the 12,000 subscriber mark contributing $2.0 million in additional annual revenue and expecting to contribute over $.7 million in operating cash flow. The addition of the RAA Motorola Canopy wireless network assets and subscribers and build-out opportunity working with CCPA is expected to ultimately deliver another 4,500 subscribers, yielding an additional $1.8 million in annual revenue.
About Omnicity:
Omnicity Corp is a public company based in Indiana providing broadband access, including advanced services of voice, video and data, in un-served and underserved small and rural markets and is planning to be the premier consolidator of rural market broadband nationwide. Omnicity's strategy is to provide a total broadband solution and continue rapid growth through acquisitions of networks and subscribers, organic growth and continue to partner with Rural Electric Membership Co-ops and Rural Telephone Companies. Omnicity has an experienced broadband operations team with extensive wireless broadband/ISP expertise as well as the expertise to consolidate large numbers of networks and subscribers through its roll-up strategy.
Forward-looking statements, made pursuant to safe harbor provisions of the PSLR Act of 1995, inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. By making these forward-looking statements, the Company undertakes no obligation to update these statements for changes after the date of this release.