Cinnabar Ventures to Acquire US Metropolitan Telecom

Cinnabar Ventures, Inc., the creators of the Yippy OS, a cloud-based operating system currently in beta, reportedly have executed a non-binding letter of intent for the acquisition of FiberCon Holdings, LLC’s wholly-owned subsidiary, US Metropolitan Telecom, LLC, a Florida telecommunications company and Competitive Local Exchange Carrier for an aggregate purchase price of cash and stock totaling $18 million.

 

The acquisition includes the appointment of US Metro president Frank Mambuca as president of Cinnabar’s Data division; a division that will have US Metro as its core subsidiary.

 

“Frank, his team and I operate from the data delivery side of the equation and understand that any web-based company is, at its very core, a data distributor,” said Richard Granville, chairman and CEO of Cinnabar, in a statement. “It is from our data delivery roots that we will grow our business, fully leverage our strengths, and deliver on customer demands for enhanced broadband capacities and applications and deliver the first end to end vertically integrated IT solutions from one provider.”

 

Granville said the company will provide cost-efficient solutions as a one-stop shop, with Cinnabar’s core being the application engine currently running the Yippy Web-OS that can be tailored to individual business owners’ needs.

 

Granville said that the company has the engine to drive communications, video conferencing and a multitude of other business applications that before now the average company would find too expensive to implement.

 

“Just as adults would want to control the content delivered to their children, the business owner can have that control as well,” Granville said. “We are going to make people excited about IT again. We are energized about what the combination of these companies will deliver.”

 

Granville said that the company’s competitors buy their data in a commoditized fashion from Tier 1 Internet Service Providers such as Level 3, Qwest, Verizon (News - Alert) and AT&T.

He said that by using the company’s own fiber networks, the company gains a significant advantage that leverages overall acquisition cost with dramatic reductions in capital expenditures and monthly expenses.

 

Granville said that it is these competitive advantages that are attractive to equity holders from US Metro and which drive the desire for equity in Cinnabar Ventures. US Metro and Cinnabar will combine their sales and marketing channels, enabling the companies to provide expanded world-class service and products to customers.

Frank Mambuca, president of US Metro, said that US Metro has always had plans for national growth with a base of operation in southwest Florida.

 

“We expect that the combination of US Metro’s technologies and network expertise with Cinnabar’s software expertise and vision will expedite the combined companies’ market potential as the world’s first provider of vertically-integrated services operating on a cloud-based worldwide LAN.”