Yonder Media, a wireless broadband provider headquartered in Reno that targets rural communities, last week announced a merger agreement with BayHill Capital of South Jordan, Utah.
Craig Vallarino, chairman and chief executive officer of Yonder Media, says the merger makes sense for Yonder Media because it furthers the company's long-term media strategy.
BayHill operates a wholly owned marketing affiliate subsidiary, Commission River Corporation, which owns proprietary software that will help Yonder Media become more than just an Internet access provider. Yonder Media envisions Web portals that offer custom-tailored content for the rural communities it serves.
"The strategic part is tied to the long-term media aspect, which in the long run is where we believe top-line revenue growth will come from," Vallarino says. "This really gives us a cornerstone of software we can build on for the YonderSpot portal."
Commission River will be folded into the Yonder Media brand. Under terms of the merger, BayHill Capital will issue up to 6.59 million shares of its common stock to acquire all the issued and outstanding shares of Yonder Media. Bayhill trades on the Over the Counter Bulletin Board under the symbol BYHL.
"By de facto we become a publicly traded company, and that allows us to do an equity raise and immediately have a liquid, tradable commodity for investors," Vallarino says.
The merger came about after Yonder Media hired New York bank EW Capital to advise Yonder on multiple strategies, including strategic mergers and acquisitions. Executives at EW Capital introduced Yonder Media's management to the management team at Commission River, and Vallarino says it quickly became apparent that Commission River would nicely supplement Yonder Media's business.
Commission River's primary market segment is telecommunications and has relationships with companies that provide DSL, VOIP and T1 services in major metropolitan areas.
Vallarino will continue as chairman and CEO of Yonder Media, and Commission River's management will stay on as well, he says.
