I listened to the conference call today with Warwick Valley Telephone President & CEO Duane W. Albro regarding its acquisition of Philly-based hosted VoIP and Unified Communications provider
Alteva,
which was announced yesterday. He stuck very close to the wording of
the press release, adding very little new information.
Warwick Valley plans to merge Alteva with its CLEC (Competitive Local Exchange Carrier) business
US Datanet, which appears to be based in Syracuse. Which raises the question, what will happen to Alteva's operations here?
"Alteva absolutely plans to stay in Philadelphia", Alteva CEO David Cuthbert said today in a statement sent to Philly Tech News. "This is our home and where we grew our business and will continue to grow our business". Cuthbert also says, "Regarding our employees, there will be no job cuts whatsoever as it pertains to this new relationship. We expect our Philadelphia based team, and Alteva based team to continue to grow in the months ahead. In fact, we are in the process of hiring multiple account managers and additional positions throughout our organization".
Cuthbert also emphasized that Alteva is "completely dedicated" to continiung to serve the needs of its clients and partners in the area.
Though publicly traded
(NASDAQ: WWVY) , Warwick Valley is not a very large company; its quarterly revenues seem to be running at a flat $6 million per quarter rate. Albro did say during the conference call that Warwick was paying 3.1 x current revenue for Alteva and the acquisition would increase its revenue base by 30%, so presumably Alteva's revenue is around $6 to $7 million. Warwick Valley has not yet broken out its existing CLEC revenues in its financial statements.
Update 7/18: An Alteva spokesperson says David Cuthbert will continue to serve as CEO of Alteva, in addition to being President & COO of Warwick Valley, Louis Hayner will also have a duel role as Chief Sales Officer of both Warwick Valley and Alteva, and Alteva founder Bill Bumbernick will continue to assist the company as a consultant. Mark Marquez, Chief Technology Officer/Systems Architect at Alteva, will become Chief Network Officer for Warwick Valley.
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