C-COR.net last week widened its West Coast broadband-services footprint by purchasing Aerotec Communications Inc. for about $2.25 million in cash.
And C-COR.net could make additional cash payments of up to $3.75 million if Aerotec hits certain revenue targets in the first two years after the deal closes later this month, the company said in a securities filing.
Founded in 1986, Simi Valley, Calif.-based Aerotec employs roughly 35 people. Its MSO customers in California include Charter Communications Inc., Comcast Corp., Adelphia Communications Corp. and Altrio Communications, a Los Angeles-based overbuilder.
Aerotec, which designs, builds and installs aerial and underground coaxial and fiber-optic cable networks, also serves municipal, commercial and residential customers.
Though broadband-equipment sales continue to be slow, demand is still high for outsourcing services that involve plant new-builds and rebuilds and network maintenance and testing, a C-COR.net spokeswoman said.
When the deal is completed, Aerotec president Ted Engborg will become Western region vice president of C-COR.net's Worldbridge construction division, which will continue to be headquartered in Simi Valley.
C-COR.net said the acquisition of Aerotec fleshes out the company's broadband maintenance, testing and construction business. Last February, C-COR.net closed deals to absorb Worldbridge Broadband Services Inc. and Advanced Communications Services Inc.
"Our goal is to be a nationwide service provider," a C-COR.net spokeswoman said. "We're filling in the niches now."
C-COR.net's purchase will also fill a hole for Aerotec. "By combining with C-COR.net, we believe that we will be better positioned to grow and provide a broader range of services to our customer base," Engborg said in a press release.
C-COR.net's services division competes with broadband outsourcing services such as ViaSource Communications Inc. and Expertech Network Installation Inc.