Telkonet Acquires Wireless Solution Provider EthoStream

  • Telkonet
  • 03.20.07
Telkonet, Inc., a leader in providing in-building broadband access over existing electrical wiring, announced that it has completed the acquisition of EthoStream, LLC, a leading high-speed wireless Internet and technology provider for the hospitality, multidwelling unit (MDU) and multitenant unit (MTU) markets.

The company acquired all of the issued and outstanding membership units of EthoStream for $11,756,097, which was comprised of cash and company common stock. EthoStream’s 2006 revenues were approximately $3.5 million and management believes it will show positive revenue growth in 2007, including approximately $2.0 million of recurring service revenue from the existing customer base.

EthoStream, a full-service high-speed Internet access (HSIA) provider, offers one of the most comprehensive technology and communications management platforms available today. Their Remote Management Console (RMC) allows owners and franchises to monitor and manage multiple locations in a convenient and efficient manner without sacrificing productivity, all backed by a dedicated in-house customer support staff. EthoStream’s strong customer base is comprised of more than 1,500 hotel and timeshare properties representing over 115,000 guest rooms.

In addition, EthoStream’s new business pipeline moving into Q2 2007 promises continued growth and market dominance within the hospitality vertical. A preferred or endorsed Internet and technology provider for many of the world’s largest hotel, resort and timeshare franchisors, EthoStream utilizes the Telkonet powerline communications (PLC)-based Telkonet iWire System™ as the broadband Internet backbone for many of their installations, eliminating the need for a property to have or install expensive CAT-5 wiring. With Telkonet’s system, which utilizes a building or property’s existing internal electrical wiring, wireless access points (WAPs) can be easily placed where needed, at any electrical outlet, rather than having to run CAT-5 cable to the server.

Coming on the heels of Telkonet’s recent acquisition of energy management manufacturer Smart Systems International (SSI), EthoStream’s centralized remote monitoring and management platform extending over HSIA, digital video surveillance and energy management will enable Telkonet to provide hospitality owners with a more comprehensive range of services and an even greater ROI on technology investments. The complete range of applications and service offering capable of leveraging Telkonet’s core PLC products as the infrastructure backbone, demonstrates true technology convergence.

Jason Tienor, president of EthoStream, said, “Telkonet and EthoStream are the perfect compliment, combining the best of wired and wireless Internet offerings. Together, we can now provide a comprehensive hybrid solution, satisfying guest connectivity requirements quickly and more cost-effectively than existing providers. In addition, EthoStream’s centralized monitoring, management and reporting platform allows the organization to provide expanded technology offerings, further developing Telkonet’s vision.”

Ron Pickett, president and CEO of Telkonet, added, “This is an exciting opportunity for both companies, and we know it will open many new doors, not only for wired and wireless Internet access, but also for a broader range of applications including energy management, which is going to be a significant  new service offering from Telkonet in the coming months. EthoStream also affords us the opportunity to offer our users access to its superior technology, exceptional customer service and access to a domestic and international footprint.”

Marketing this complete technology offering to hospitality, timeshare and MDU/MTU customers has generated a large amount of interest at industry conferences such as Hospitality Operations and Technology (HOT), Green Hospitality Conference and Hotel Technology Next Generation (HTNG).

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