Days after reporting strong financial results for the first quarter, cable communications firm Comcast (Nasdaq: CMCSA) Wednesday said it closed the acquisition of technology firm Deep Blue Communications. However, the company did not disclose the terms of the transaction.
By adding Deep Blue into its fold, the telecom giant intends to offer a state-of-the-art communication network to commercial customers by incorporating its services with the advanced WiFi technology of the former. The expertise of the companies in their relevant fields would help them offer WiFi services at scale, primarily in sectors like entertainment and hospitality, while also gaining a competitive advantage.
The Latham, New York-based Deep Blue is an industry leader in the development and maintenance of WiFi networks for the business sector.
It is expected that the expertise of the companies in their relevant fields would help them offer WiFi service at scale
Bill Stemper, president of Comcast Business, said, “Customers will benefit from our expertise in advanced business and network solutions with Deep Blue Communications’ know-how in providing commercial, managed WiFi at scale. We look forward to delivering innovative solutions that will drive competitive advantage and growth in key vertical industries such as hospitality and entertainment.”
The buyout complements Comcast’s efforts to enhance its footprint in the entertainment space. In a strategic move, the company last year acquired UK-based pay-TV service provider Sky plc., after a long-drawn-out battle with rival bidder 21st Century Fox (FOX).
The shift in focus from traditional cable TV service to more advanced areas of communication assumes significance considering the exodus of customers to streaming services like Netflix (NFLX).
Also see: Comcast Corp Q1 2019 Earnings Conference Call Transcript
Last month, Comcast reported a double-digit increase in its first-quarter earnings and revenues, owing mainly to solid growth in the demand for high-speed internet service. During the period, the company added around 375,000 high-speed internet customers.
Shares of Comcast traded slightly higher during Wednesday’s regular session, after reaching a record high a few days ago. The stock gained 27% so far this year and 36% in the past twelve months.