OneEighty Networks buys Internet provider

Spokane-based OneEighty Networks has purchased an Eastern Oregon Internet service provider to expand its services in that area, said OneEighty CEO Greg Green.

Green said the acquisition of Oregon Trail Internet, Inc., involved no cash. “It was a straight stock deal” in which Oregon Trail’s owners will receive about 5 percent ownership in privately held OneEighty, he said. Green declined to release further terms of the deal.

The Oregon company has business and residential customers in Walla Walla, Bend and Pendleton. Oregon Trail will add about $1.2 million in revenue to OneEighty, Green said.

“This is a deal that finally puts us in an outright cash-positive position as a company,” said Green. OneEighty has lost money since it was relaunched nearly three years ago using 300 miles of fiber optic cable in Spokane and North Idaho that Green bought from now-defunct Avista Communications. OneEighty also bought several customer-service areas formerly served by Avista Communications. It now has customers in Idaho, Washington and Oregon.

In 2003, OneEighty reported revenue of about $10 million.

As OneEighty takes over operations, six of Oregon Trail’s 10 employees will be let go, Green said.