Wi-Fi networks provider Boingo Wireless is going private in a deal valued at $854 million including debt.
Under the deal, a unit of Digital Colony Management will acquire Boingo Wireless for $14 a share in cash. Boingo closed Friday at $11.40. Digital Colony Management is paying a 23% premium for Boingo Wireless.
The transaction is expected to close in the second quarter. Digital Colony’s portfolio includes a bevy of global digital infrastructure firms.
Separately, Boingo Wireless reported its 2020 financial results, which have been hampered by the COVID-19 pandemic. Boingo Wireless took a hit from demand from retail and transportation hubs.
For 2020, Boingo Wireless reported revenue of $237.4 million, down 10% from a year ago. Net loss for the year was $17.1 million, or 38 cents a share. Boingo Wireless had cash and cash equivalents of $40.7 million as of Dec. 31, down from $54.6 million as of Sept. 30.
Boingo Wireless saw declines across its carrier services, multifamily and legacy businesses. Its military networks unit and private networks saw sales increases. Boingo Wireless gets the bulk of its revenue from partnerships with wireless carriers and military networks.
Source: Networking - zdnet.com
