An international provider of software and services from Netherlands, Elephant Talk Communication Corp., is set to acquire 100 percent assets of Telnicity LLC, a U.S.-based MVNE/MVNO Enabler Company from Oklahoma for approximately $1 million.
The transaction will be confirmed on or before March 8.
Once the acquisition is over, Elephant Talk will issue one million shares of common stock at closing. However, the shares will not be available for sales or disposition for 18 months as part of a lock-up agreement.
"We will work on a seamless and efficient global platform for MNO's, MVNE's, and MVNO's to operate by taking advantage of the technologies of both companies," Steven van der Velden , chairman and chief executive officer of Elephant Talk Communications said in a press statement.
The executive believes that Telnicity's existing network of business and telecommunication partners and customer base will give an added boost to Elephant Talk's foray into North America. The acquisition will include Telnicity's customer contracts, carrier agreements, telSPACE, mCASH, office infrastructure and billing systems.
The company's full-time employees will retain their current positions.
"Joining forces with Elephant Talk will allow the combined company to bring an expanded product offering to the U.S. market to be driven by a strong U.S. based management team with substantial in-market sales, marketing, and technology development experience," Dane Gasio, founder and chief executive officer of Telnicity said. "Elephant Talk will give Telnicity the depth and breadth of product offerings that allow it to be more competitive and attractive to larger U.S. companies."
Once the transaction is confirmed, Dane Gasio will become President of Elephant Talk North America and will report to Elephant Talk Chief Executive Officer Steven van der Velden.
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