Eagle Broadband grows IT business via acquisition

Eagle Broadband last week agreed to acquire the corporate information technology (IT) customers of Houston-based Connex Services, the company announced today.

Effective Jan. 2, 2007, Eagle will give Connex 1,203,774 shares of unregistered common stock, 754,717 of which will be registered for resale by Connex. On Dec. 7, when the agreement was made, the stock closed at $0.53.

The acquisition gives Eagle more than 50 Connex clients who generate a combined $600,000 in annual revenue, Eagle said. The deal boosts Eagle’s current IT revenue and customer count by 35%.

Eagle wasn’t available this morning to answer questions about the deal.

Eagle’s “structured wiring” division, which includes IT services, contributed nearly $1.4 million in revenue during its 2006 fiscal year, or 35% of the company’s total revenue. The group was Eagle’s second-largest revenue generator in fiscal 2006 (behind its product division), growing 2% from the prior year while revenue from the other two main divisions (“products” and “broadband services”) decreased. In a statement released today, Eagle Broadband chief executive officer Dave Micek called the company’s IT services business “a quiet giant for us.”

In addition to IT services, Eagle offers residential IPTV services and indoor satellite telephony systems for enterprise, military and other government clients.