PROVO A week after finalizing the purchase of the city's fiber-optic system, Broadweave Networks announced it will partner with Draper-based Telarus Inc. to market commercial data and voice services on iProvo.
According to a statement issued by South Jordan-based Broadweave, the company reached an agreement with Telarus Inc. to market and sell high-speed data and voice services to businesses in Provo.
Last Friday, Broadweave and Provo finalized terms of the agreement to sell the iProvo network for $40.6 million. The deal was slated to close at the end of June, but they instead reached a "modified closing" in which Broadweave assumed control of the network while the deadline for the final closing was postponed two months to allow Sorenson Capital, which was contemplating an investment in Broadweave, to continue its due diligence.
Upon completion of their initial due diligence, Sorenson Capital executives felt the proposed iProvo deal no longer fit the firm's private equity profile because they failed to reach agreements with Veracity Communications and Nuvont Communications, said Fraser Bullock, managing director of Sorenson Capital. However, EsNet Ltd., a local venture capital firm, has increased its investment in Broadweave.