Ray Carey, NeoNova’s chief executive officer, says the firm’s board of directors climbed a “decision tree” before deciding to sell the firm to the National Rural Telecommunications Cooperative.
The deal was announced Monday, although financial terms weren’t disclosed.
Our conversation with Carey, who also says he plans to stay with the firm:
What were the key factors leading to the decision to sell?
Decision tree always factored on opportunities that were in the best interest of all NeoNova stakeholders which are: customers, investors and employees.
NeoNova’s board determined that the NRTC offer satisfied these criteria (good return on investor’s capital as well as in the best interest of the company’s future)
Why will firm remain based in Raleigh?
NRTC intends to leverage NeoNova’s continued success in rural markets and use it to expand their service offerings to benefit its members.
How does NeoNova fit as a private enterprise inside an organization focused on rural telecom companies? As a value-ad for members?
NeoNova has a strong history in the rural telecom market, with the majority of its revenues being attributed to it. NeoNova’s “know how” will serve as a value-add to the member base of NRTC.
Will this deal have any immediate impact on jobs and/or expansion plans?
NeoNova will continue operations as normal and function as an independent subsidiary of NRTC. At this juncture, there are no changes to any NeoNova personnel plans in relation to the acquisition.
NeoNova recently expanded and move its offices to Raleigh. The NRTC and NeoNova focus on telecommunications providers.
The NRTC and NeoNova provide such services as email, web hosting, network management, circuit management and help desk.
The NRTC works with more than 1,500 rural utilities and affiliates across 48 states. Collectively they serve 20 million homes and 50 million people. It was founded in 1986.
