The board of Wi-Fi and DAS specialist Boingo Wireless unanimously backed a $854 million takeover bid by infrastructure investment company Digital Colony, with the proposed deal expected to close in Q2.
Digital Colony’s offer is subject to shareholder and regulatory approval and includes taking on Boingo Wireless’ debt of $199 million. It will pay $14 per share for the company, which will be delisted from the stock exchange on completion.
Boingo Wireless CEO Mike Finley said the proposed sale concluded a “robust strategic review process” conducted over the last 12 months and would offer the business “greater flexibility” to “continue advancing” its plans.
During its review, several media reports claimed Boingo Wireless was close to finding a buyer, with multiple suitors said to be in the frame.
In the Boingo Wireless earnings statement for 2020, released on the same day as the takeover announcement, Finley said the company had maintained “business velocity” in 2020, despite Covid-19 (coronavirus) headwinds accelerating an “anticipated decline in our legacy retail and advertising products” and delaying “progress on several projects into 2021”.
Net loss increased from $10.3 million in 2019 to $17.1 million in 2020, with revenue down 10 per cent to $237.4 million.
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