Anyone Read this??
Camvera Nixes CyberTel Tieup
Municipal wireless broadband provider ends merger talks after suitor gets involved with former exec.
April 7, 2006
Rural wireless broadband provider Camvera Networks ended its merger talks Friday with CyberTel Capital, citing a merger announced Monday by CyberTel with HBLN Services, a company headed by a former Camvera executive.
“Camvera had a nonbinding agreement to merge with CyberTel, but due to a number of reasons, we’ve made little progress recently to finalize the deal,” said Carl Peede, president and COO of Camvera, in a statement. “With the merger of CyberTel and HBLN, we now understand why this was the case.
Mr. Peede said that any moves by CyberTel into the municipal wireless broadband market will “face significant scrutiny.”
CyberTel’s merger with HBLN “has raised significant concerns on our part about the use of confidential information since principals of both companies and other key individuals involved with the merger are under nondisclosure agreements with Camvera Networks,” he said.
John Overley, Camvera’s executive vice president, said he found the announced merger between CyberTel and HBLN “extremely disconcerting.”
He charged that HBLN’s claim of “extensive experience” with rural broadband wireless implementations came mainly from HBLN President Walt Henley’s 22-month tenure as chief operating officer of Camvera, which ended on December 31 of last year.
“That other individual kind of aggravated us,” said Mr. Peede. “That was the irritating party. It was more of a matter of clearing the air and correcting the record.”
Mr. Henley acknowledged that he had been a former consultant to Camvera, but declined to comment on Camvera’s allegations. However, he acknowledged his industry expertise. “I’ve been in the business for 25 years,” he said.
According to CyberTel, it’s the one that called off the merger.
“CyberTel entered into exploratory discussions with Camvera looking into a merger or acquisition, but we were unable to reach an agreement on how to go forward,” said Jeff Flannery, a consultant with CyberTel. “CyberTel let Camvera know about a month ago that was not going to take place.”
He considers the disagreement over HBLN to be peripheral to the matter. “The current business transaction that took place has no bearing on the Camvera business or any of the concerns they brought up,” he said.
Mr. Flannery added that CyberTel has decided to go into an entirely different business from the one it was in earlier, so any experience Mr. Henley brings won’t be relevant. CyberTel now plans to focus on providing services for homeland security, public safety agencies, and first responders.
“Walt Henley, who is the executive in question, needs to adhere to any confidentiality agreement he had with Camvera, and we will abide by that as well,” said Mr. Flannery. “But there is no overlap and no need for concern.
Rural Wireless Broadband Grants
Meanwhile, Camvera also promoted a $34-million RUS (Rural Utilities Service) loan presented by Thomas Doerr, undersecretary for rural development at the U.S. Department of Agriculture, to its partner Broadband South for bringing rural broadband wireless access to 75 communities.
The Atlanta-based company has been in the rural broadband wireless business for four years and has deployed 25 systems, according to Mr. Overley. Most of those have been with equipment from Navini, Waverider, and Motorola. Camvera has also deployed voice in some of those
