My Prediction Comes True: EXA Buys Aquacomms And Its Significance
I predicted a couple months ago that EXA was consolidating the Atlantic and would purchase Aqua Comms, which has been struggling, and whose estimated value was written down by its former owner, an infrastructure fund. An financial disclosure indicates that the buy price is a mere $54 million for all of Aqua Comms' assets. That $54 million includes the the four fibre pair AEC1, two fibre pairs on AEC2, which is a consortium project, and two Irish Sea cables. That's not very good. In fact, it is terrible. The price is probably 15% of of construction costs. It's a great contrarian EXA move because EXA can absorb the company's assets, but fire 99% of the employees. So the revenue should improve the bottom line. Aqua Comms illustrate how a lot of venture capitalists are bullish on telecom infrastructure without really understanding the challenges of making it successful (they should hire me for a lot of money to educate them). 😃 So what went wrong? Poor operational performa...