Broadview Networks Holdings, which provides managed voice and data networking services in the US, is seeking to raise $287.5m in an IPO on Nasdaq.
The Rye Brook, New York-based company said its services are increasingly based on high-speed digital transmission connections (T-1 or greater capacity). Its combined T-1-based and managed service revenue grew by 18% in the third quarter and currently comprises 40% of its total retail revenue base, with typical gross profit margins of 60% to 70%.
Broadview targets small and medium-sized business or enterprise customers with four to 500 access line equivalents. It said data prepared by the Federal Communications Commission showed there are 18.2 million business lines in its target market. Broadview’s latest figures show it provided services to 70,000 customers and over 800,000 lines in 20 markets across 10 states.
Broadview bulked out its operations with the acquisition of InfoHighway this year and ATX in 2006. In the nine months to September 30, its net loss rose from $11.3m to $20.6m on revenue that rose 85% to $325.9m.