GTC Telecom Corp. Signs Agreement to Acquire TelSpan, Inc.; Agrees to a Related Transaction for Its Perfexa Subsidiary.Business Editors
COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif.--(BUSINESS WIRE)--April 23, 2004
Acquisition Will Provide GTC GTC
See: Good 'til cancelled order
See good-till-canceled order (GTC). With 4th Largest
Fiber Optic Network In Mexico
GTC Telecom Corp. (OTCBB OTCBB
See OTC Bulletin Board (OTCBB). : GTCC GTCC Greater Than Class C (waste)
GTCC Gas Turbine Combined-Cycle (power plant)
GTCC Government Travel Charge Card
GTCC General Trading & Contracting Company ) today announced that it has entered into an Agreement to acquire TelSpan, Inc. in a tax-free stock swap A stock swap also known as a share swap or equity swap is a business takeover in which the acquiring company uses its own stock to pay for the acquired company. transaction. TelSpan, a California corporation, owns the rights to acquire out of bankruptcy, at a substantial discount, the fourth largest fiber optic network in Mexico, consisting of approximately 4,000km of fiber optic lines and other related assets. The network, which is currently active, encompasses the "Golden Triangle Golden Triangle can refer to:
Spanish Ciudad de México
City (pop., 2000: city, 8,605,239; 2003 metro. area est., 18,660,000), capital of Mexico. Located at an elevation of 7,350 ft (2,240 m), it is officially coterminous with the Federal District, which occupies 571 sq mi as well as other key areas of Mexico, and will allow GTC to provide cost-effective telecom and information services See Information Systems. to key metropolitan centers in the rapidly expanding U.S. / Mexico telecommunications corridor. TelSpan is currently in the process of finalizing its financing for the acquisition of the network. The closing of GTC's acquisition of TelSpan is conditioned on the successful financing and completion of its acquisition of the network and related assets.
In a related agreement, GTC agreed to sell a controlling interest controlling interest
The ownership of a quantity of outstanding corporate stock sufficient to control the actions of the firm. Controlling interest often involves ownership of significantly less than 51% of a firm's outstanding stock because many owners fail of its Perfexa Solutions, Inc. Business Process Outsourcing Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider. Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in ("BPO BPO Business Process Outsourcing
BPO Benevolent & Protective Order (of Elks of the USA)
BPO Benzoyl Peroxide
BPO Business Process Optimization
BPO Broker Price Opinions
BPO Buffalo Philharmonic Orchestra ") call center and IT development subsidiary to the shareholders of Infospan, Inc., a California company commonly controlled by some of the shareholders of TelSpan. Infospan, a BPO, call center and IT development company headquartered in Irvine, CA, has call center operations in Mexico, significant sales networks for customer growth opportunities for India, Mexico and the U.S. and a seasoned management team with significant experience in the outsourcing sector.
S. Paul Sandhu, GTC's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. stated, "The acquisition of TelSpan will allow us to leverage GTC's established U.S. telecommunications operations with TelSpan's access to the 4th largest fiber network in Mexico. This, coupled with our ongoing strategy to expand into the local services market, will allow us to create a full service, facilities-based, telecommunications company able to better compete in today's rapidly changing marketplace."
Mr. Sandhu continued, "The combination of Perfexa and Infospan allows Perfexa to tap Infospan's experienced sales force, extensive contract opportunities and resources. Perfexa will then be able to provide call center and IT development services not only from India but also from Mexico and the United States Relations between the United States and Mexico are among the most important and complex that each nation maintains. They are shaped by a mixture of mutual interests, shared problems, and growing interdependence. ."
Farooq Bajwa, TelSpan's CEO stated, "We are very excited with the synergy created by combining TelSpan's Mexico facilities with GTC's established U.S. telecommunications operations. The coupling of GTC's U.S. operations and TelSpan's Mexican network will allow the combined companies to aggressively exploit the largest international telecom corridor between any two countries in the world. "
Mr. Bajwa continued, "Infospan's extensive sales network and potential business opportunities, together with Perfexa's established operations will allow the combine companies to become a significant player in the world-wide Business Process Outsourcing market."
Pursuant to the terms of the Acquisition Agreements, upon completion of the proposed transactions, TelSpan shareholders will secure a 84% majority control position within GTC and Infospan's shareholders will secure a 84% majority control position within Perfexa. The closing of the transactions are conditioned upon approval of GTC's shareholders which is anticipated to occur within the next ninety days.
About GTC Telecom Corp.
Founded in 1997, GTC Telecom and its subsidiaries provide long-distance, calling card, conference calling and toll-free services; Internet access to residential customers throughout the United States; as well as Business Process Outsourcing services. GTC provides its services directly to consumers, as well as through affiliate marketing programs with companies like Best Buy Inc. For more information, visit www.gtctelecom.com.
About Perfexa Solutions, Inc.
Perfexa Solutions, Inc. is committed to providing cost-effective customer service, CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. and vertical management solutions for small to medium-sized businesses for the global communication marketplace.
Through its wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. , Perfexa Solutions Pvt. Ltd., an Indian company, Perfexa provides Inbound Call Center Management Solutions with future plans for Outbound Call Center Management Solutions, IT Management Solutions and Business Operations Management Solutions. Perfexa Solutions is in the process of finalizing its first call center in New Delhi, India, which is expected to become operational in the first quarter 2003. For more information visit www.perfexa.com.
About TelSpan, Inc.
TelSpan, Inc., is a telecommunications company with rights to purchase, at a significant discount, the 4th largest fiber optic network in Mexico. These assets, located in the "Golden Triangle" of Monterrey, Guadalajara and Mexico City, will allow TelSpan to tap into the fast growing Spanish-speaking marketplace throughout North, Central and South America.
About Infospan, Inc.
InfoSpan provides services such as customer service operations, overseas software development, billing, collections, data transcription and other outsourcing services to small, medium and enterprise level customers at its customer contact centers in the U.S. and Mexico.
This release may contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. This report should be read in conjunction with GTC Telecom Corp.'s annual report on Form 10-KSB and its quarterly reports on Form 10-QSB. GTC's results may vary significantly from quarter to quarter and will depend, among other factors, on product launches and market acceptance, manufacturing contracts, and distribution agreements.