Brightstar and InPhonic Sign Definitive Agreement to Form Strategic Alliance.-- New Alliance Sets Stage for Expanded Sales Opportunities and Better Operational Efficiencies for Both Companies -- WASHINGTON & MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. -- Brightstar Corp., a global leader in customized distribution and supply chain solutions for the wireless industry, and InPhonic, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :INPC INPC ITU National Point Code INPC Internet Non-Profit Center ), a leading online seller of wireless services and products, today announced the signing of a definitive agreement to form a new strategic alliance. Upon the closing of the agreement, there would be four principal components of the new relationship: * Brightstar will acquire the distribution, inventory and fulfillment assets of InPhonic and will become InPhonic's exclusive provider of hardware (wireless handsets, SIM cards and accessories), direct-to-consumer distribution, on-hand inventory, value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. customization and logistics. * Brightstar will make a $5 million equity investment in InPhonic representing approximately 2.5% of InPhonic's outstanding shares. * Brightstar will leverage InPhonic's online activation and enablement platform for its existing consumer businesses. Brightstar serves approximately 11,000 points of sale in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with some of the most recognized retail store brands. * Brightstar also serves approximately 160,000 points of sale worldwide providing both companies global expansion opportunities with their new combined capabilities. The terms of this new strategic alliance encompass collaboration across a number of functional areas with a focus on providing InPhonic benefits in four key areas - improved cash flows due to outsourced inventory management, enhanced margins resulting from hardware procurement, reduced current operational and fulfillment expenses, and significant growth opportunities in a new sales and marketing relationship with Brightstar and its domestic and international sales channels. Subject to closing conditions, the transaction is expected to close in mid to late September 2007. "This strategic partnership with Brightstar will allow us to focus on our core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
"The relationship with InPhonic represents a mutually beneficial Adj. 1. mutually beneficial - mutually dependent interdependent, mutualist dependent - relying on or requiring a person or thing for support, supply, or what is needed; "dependent children"; "dependent on moisture" situation for both of our organizations. It allows InPhonic to concentrate on its core business, while Brightstar does what it does best - provide supply chain management that is customized to meet customer needs," said Marcelo Claure, Brightstar's founder, president and CEO. "InPhonic is a leader in the online wireless industry. We are very excited to be working with them to explore and cultivate expanded sales opportunities and deepen our existing relationship in optimizing their supply chain and distribution needs." About Brightstar Brightstar Corp. is a global leader in customized distribution and supply chain solutions for the wireless industry. Headquartered in Miami, FL, Brightstar operates sales, distribution and manufacturing facilities in 49 countries on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. . The company provides solutions to more than 30,000 network operators, MVNOs, retailers, resellers and independent agents around the world, and also represents the world's leading wireless manufacturers. In 2006, Brightstar generated $3.6 billion in revenue. For more information, visit www.brightstarcorp.com. About InPhonic Headquartered in Washington, D.C., InPhonic, Inc. (NASDAQ:INPC) is a leading online seller of wireless services and products. InPhonic sells these services and devices, and provides world-class customer service through websites that it creates and manages for online businesses, national retailers, member-based organizations and associations under their own brands. InPhonic also operates Wirefly (www.wirefly.com), a leading one-stop comparison mobile phones and wireless plans shopping site that has been awarded "Best of the Web" by Forbes magazine and "Best in Overall Customer Experience" by Keynote Performance Systems. InPhonic also delivers a full range of MVNO (Mobile Virtual Network Operator) A reseller of wireless services. MVNOs do not own licensed spectrum and typically do not have any of their own wireless network infrastructure. and mobility solutions to enterprise clients through its Mobile Virtual Network Enablement (MVNE MVNE Mobile Virtual Network Enabler (wireless telecommunications) MVNE Medium Voltage Neutral Earthing ) platform. Among many awards in its history, InPhonic holds the distinction as #1 Company of the Year on the INC. 500 for 2004. For more information on the company, its products and services, visit the InPhonic Corporate Web site at www.inphonic.com. Click here to join InPhonic's investor email list, http://www.b2i.us/irpass.asp?BzID=1461&to=ea&s=0 "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement - Under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, this press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Important factors, which could cause actual operating results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by the Company. This press release and statements are current as of the date of the individual announcements and the Company undertakes no obligation to publicly release any revisions to any forward-looking statement to reflect events or circumstances after the date thereof or to reflect the occurrence of unanticipated events. The closing of the agreement with Brightstar is subject to the satisfaction of closing conditions, including Brightstar board approval, potential government and other third-party approvals, the execution of a mutually acceptable service agreement, sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. agreement and sale agreement. Furthermore, we can provide no assurance that the conditions set forth in the agreement with Brightstar will be satisfied or that the closing will occur. |
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