CHARLOTTESVILLE, Va.-First Avenue Networks announced it plans to acquire wireless broadband service provider Teligent Inc., including its 24 GHz spectrum licenses, fixed-wireless broadband operations and radio assets in a stock transaction valued at $99 million.
Following the transaction, First Avenue will hold more than 700 megahertz of spectrum at 24 GHz and 39 GHz in the top 75 U.S. markets. The company plans to target telecommunications providers, mobile backhaul providers, wireless Internet service providers and enterprises with the expanded spectrum portfolio.
First Avenue leases its 39 GHz spectrum licenses to 14 customers, including a mobile carrier, a wireless backhaul provider and several WISPs. The company views the 24 GHz licenses, which are concentrated in metropolitan areas, as complementary to its nationwide 39 GHz portfolio in that they add coverage in heavily populated areas and they offer twice the range the 39 GHz licenses offer, enabling point-to-multipoint communications.
“Acquiring Teligent’s assets and operations will enable us to expand our high-speed broadband wireless access service offerings,” said Dean Johnson, president and chief executive officer of First Avenue. “We anticipate extending these networking advantages to Teligent’s customers.”
In addition, First Avenue will appoint Raj Singh, who co-developed the predecessor concept, which was integral to Teligent’s formation in 1997, to its board of directors.
Johnson said the transaction should close within 90 days, following approval from the government.
