Los Angeles, Calif. — Los Angeles-based Boingo Wireless (NASDAQ: WIFI) has agreed to acquire Elauwit Networks for a total cash consideration of $28 million.
The purchase agreement also provides for a contingent, earn-out cash consideration of up to an additional $15 million based on the achievement of certain revenue targets for the acquired business following the closing of the acquisition during the 2018, 2019 and 2020 fiscal years.
Headquartered in Charleston, South Carolina, Elauwit provides high-speed wi-fi to 220 student housing and multifamily properties across the U.S. Boingo expects the transaction to expand its addressable market for venues by an additional 16 million multi-dwelling units across the country. Boingo Wireless is a leading provider of DAS and wi-fi, reaching more than one billion people annually.
“We are thrilled to welcome the Elauwit team to the Boingo family and to jumpstart our entry into the rapidly growing multifamily space,” says David Hagan, CEO of Boingo Wireless. “The acquisition aligns well with our strategy of securing long-term wireless rights at venues, building state of the art networks at these venues and monetizing those networks through our unique suite of products and services.”
“We’ve been fanatical about creating the best connectivity experiences in the multifamily market,” says Dan McDonough, chairman and founder of Elauwit. “We look forward to bringing Boingo’s resources as a larger, better capitalized company and their innovations as a technology pioneer to our customers. Our employees and our customers have always been at the heart of Elauwit’s success. I’m excited that both will have a bright future as part of the Boingo family.”