Airband Communications and Sparkplug Communications have merged their businesses into what they say is the nation’s largest fixed-wireless service provider targeting businesses. In addition to the merger, the companies have received another $20 million in venture-capital funding for future growth and acquisitions.
Previous equity backers Ignition Partners, Key Venture Partners, M/C Venture Partners and Trilogy Equity Partners are leading an $11 million equity investment. Airband also received $9 million in debt financing from Silicon Valley Bank and MMV Financial.
“Our companies share the belief that it’s critical to increase market penetration in existing territories and leverage the economies of scale we will realize with our combined networks and services,” said Airband CEO Michael Ruley in a prepared statement. Ruley formerly was CEO of Sparkplug. “As a combined entity, we will have the financial backing, network and human resources required to grow, organically and strategically, and to further enhance our competitive position in our markets.”
Airband delivers data services from 1 Mbps to GigE speeds and a suite of VoIP services over a last-mile fixed wireless network that bypasses the wireline local loop network. The new company covers Atlanta; Austin, Texas; Baltimore, Md.; Dallas; Des Moines, Iowa; Fort Lauderdale, Fla.; Fort Worth, Texas; Houston; Las Vegas; Los Angeles; Miami; Orange County, Calif; Philadelphia; Phoenix; San Antonio, San Diego and Washington, D.C.
Tim Kinnear, formerly CEO of Airband, will become CFO of the combined company, which will have headquarters in Dallas. Jeff Owens is the new CTO; Jim DaBramo is executive VP of sales; Jennifer Mao is VP of marketing and Daman Wood is VP of wholesale markets.
Airband, Sparkplug merge; receive $20M in funding
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