Rural cable startup Sunrise Broadband Group signed an agreement to merge with Y-Tel International, a Baton Rouge, La.-based provider of voice-over-Internet-protocol and Wi-Fi service, in a stock deal.
Details including the value of the deal were not released, but the merger was approved by both companies’ boards of directors and now awaits approval from shareholders and the Securities and Exchange Commission.
If approved, Sunrise shareholders will receive one share of Y-Tel stock for each share of their Sunrise stock, and the company will be renamed Sunrise Broadband Holdings Inc.
Calvin Smiley, Sunrise’s CEO, will assume the role of chairman and CEO of the new company. John Conroy, T-Tel’s acting CEO, will move over to executive vice president of strategic development.
Based in Broomfield, Colo., Sunrise is looking to acquire rural cable operations and roll out voice, video and data services among those properties. In June, the company secured a $25 million equity line of credit from Boston-based investment house Dutchess Advisors, and it since closed on its first cable-system acquisition, although it has not released the name of that provider.
This spring it also added former Jones Intercable executive Gregory Liptak to its board of directors.
Y-Tel’s wireless technology will help the new company to create hybrid technology to serve rural America.
"The Y-Tel wireless technology will enable Sunrise to position hybrid technology to optimize digital video, high-speed Internet and VoIP to current and future customers in rural America," Conroy said.
