PROVO — It appears Broadweave Networks and Veracity Communications won't be teaming up on iProvo after all.

Provo officials and representatives from South Jordan-based Broadweave confirmed Wednesday that the two telecommunication companies won't merge forces to become sole service provider on the citywide telecommunications network.

Broadweave CEO Steve Christensen confirmed the development through company spokesman Clayton Blackham.

"We've mutually pulled out," Blackham said, "but will be working together in a new way which we will discuss later."

Blackham declined to elaborate on how the foiled merger will affect customer service or how this will affect the company's modified closing agreement with Provo to buy the network for $40.6 million. He said those details will be coming in the next few days.

Veracity President Drew Peterson did not immediately return requests for comment.

Shortly after the city announced the sale of iProvo in May, Broadweave reached agreements to buy up MSTARmetro and Nuvont Communications' customer-base. At the same time, they announced a merger with Veracity Communications in a cash and stock transaction. At the time, city officials applauded the move because Veracity proved itself as a "capable technology player."

Now that the merger is bust, that spells the beginning of the unraveling of the iProvo sale, said Jesse Harris, a software implementer who initially broke news about the merger on

"I'm thinking it's — for all intents and purposes — considered dead," he said. Veracity brought a lot of desirable attributes to Broadweave and "not having that anymore is going to prove to be very problematic."

Harris suspects the pullout has given Sorenson Capital — a company that has promised to financially back Broadweave's acquisition of iProvo — second thoughts. That would explain why finalization of the sales transaction has been put off 60 days.

Earlier this week, Provo and Broadweave signed a "modified closing" while Sorenson Capital continues to complete due diligence and analysis of the transaction.

Sorenson Capital spokesman Jacob Moon declined to comment.

Provo spokeswoman Helen Anderson said city officials are aware of Veracity's pullout, but they don't expect it to affect the terms of the sale.

"It really doesn't change anything for us," she said. "We have to kind of watch and see how it evolves, but right now we're not concerned."

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