They paid roughly 3.5 times revenue which seems a bit much (unless Ethostream is highly profitable). Then again, some part of the payment was in TKO stock.
At least there is a strong synergy between the two companys in their selling approaches to the MDU marketplace. It would be nice to know whether they plan to merge and retain sales teams and how they fit operationally. They mention: "EthoStream utilizes the Telkonet powerline communications (PLC)-based Telkonet iWire System(TM) as the broadband Internet backbone for many of their installations". So new TKO sales to Ethostream's existing customer base was not the motivation for acquisition. It appears TKO was just after an extended product offering only.
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