Otelco Acquires Reliable Networks to Expand Managed Services Offerings

Telecommunications services provider Otelco Inc. (OTEL) has acquired Reliable Networks, a provider of cloud hosting and managed services, to provide further support for its VoIP, email, database and industry vertical software applications offerings. Otelco paid $500,000 at the closing of the acquisition, paying the balance of the purchase price in stock over the next three years.

According to the company, the acquisition will provide additional managed service capabilities to Otelco that "will supplement the growth of existing IP services while expanding its current market presence."

The combination expands Otelco's existing carrier-grade service offerings to support critical VoIP, email, database and industry vertical software applications.

"Our business customers increasingly are turning to us to expand our hosting and managed services capabilities to be able to provide seamless, turnkey services anchored by our high-quality connectivity offerings," Otelco CEO Mike Weaver said in a prepared statement.

Weaver added: "Leveraging the networking and application hosting expertise of Reliable Networks by acquiring the company is a natural, evolutionary extension of our current product and services offerings to support the substantial growth of our Hosted IP Voice PBX Product."

Otelco said that Reliable Networks will operate as a division of OTT Communications, Otelco's New England competitive operating entity.