Boingo Wireless To Acquire Charleston Start-up Elauwit Networks For Venue Wireless
Summary
Boingo Wireless intends to acquire Elauwit Networks for $28 million in cash plus an additional earn-out of $15 million.
Elauwit provides WiFi installation and operations for student and multifamily venues in the U.S.
The deal provides Boingo with a beachhead in these large markets, but they present a slow sales cycle which Boingo will need to improve upon.
Quick Take
Boingo Wireless (WIFI) has announced it has agreed to acquire Elauwit Networks for $28 million plus revenue earn-out.
Elauwit Networks is a Wi-Fi network provider for student and multifamily properties.
To deliver on the deal, WIFI will need to speed up Elauwit’s market penetration with slow-moving real estate and education venue owners.
Target Company
The Charleston, South Carolina,-based Elauwit was founded in 2002 and currently supplies high-speed Wi-Fi to more than 220 student housing and multifamily properties across the US. Management is headed by CEO Barry Rubens, who has been with the firm since 2013.
Below is an overview video of the company’s offerings:
The company’s primary offerings include Wi-Fi services installation and operation. Additionally, the company enables clients to have their users billed directly from Elauwit or include the charge in the bill from the client, allowing for potential ancillary revenue.
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