SecurFone America Agrees to Sell Selected Prepaid Wireless Assets to TeleData World Services for Cash and Notes of $2 Million and Convertible Preferred Stock.SAN DIEGO--(BUSINESS WIRE)--Nov. 10, 1998-- Company to Focus on Core Businesses: Internet Telephony and Global Wireless System Engineering SecurFone America Inc. (OTC/BB: "SFAI SFAI San Francisco Art Institute SFAI State Fiscal Analysis Initiative ") Tuesday announced signing a Letter of Intent with TeleData World Services Inc. (OTC/BB:"TWOS") in which TeleData will acquire the rights to SecurFone's Network Services and handset solution prepaid wireless products. Building on the planned acquisition of SCIES Inc., announced last June, SecurFone will focus on its other core businesses namely Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. products and services and engineering large-scale global wireless systems. Total value of the transaction was not disclosed. "The confluence of wireless and IP technologies are part of the natural evolution of the information marketplace," said Paul B. Silverman, recently appointed 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. of SecurFone America. "Capitalizing on SCIES telephony expertise and our wireless services capabilities, we intend to grab hold of the leadership position in the high-potential Internet telephony sector." By the year 2005, total global voice traffic over IP networks is projected at about 750 billion minutes, up from 450 billion minutes today. Internet telephony is expected to handle 25 percent of this traffic, up from about one percent today. SecurFone's other core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
"SecurFone's growth strategy will be driven by both sales and acquisitions," said Silverman. The proposed transaction includes notes and cash of $2.0 million and convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . Total value of the transaction was not disclosed. "The acquisition of SecurFone assets is viewed by TeleData as a significant opportunity to complement and expand our current prepaid wireless offering," said Tony Cullen, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. for TeleData World Services Inc. "We believe the integration of the SecurFone prepaid wireless assets into our existing operations will enable us to achieve our goals for national service deployment on an accelerated basis." About SCIES SCIES Inc. designs, develops, markets and supports Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (IP)-based voice and facsimile products. SCIES' customized software See custom software. and integration services incorporate off-the-shelf hardware to deliver communication applications for multinational businesses, national and international carriers, value-added resellers and ISPs. SCIES Inc. products include SCIES Fone Assist(SM), a PC-based internet telephony software system, SCIESFone Express(SM), a recently announced JAVA-based multi-line Internet telephony PC client, SCIES CITRUS(SM) System, a CDR (1) See CD-R and extension. (2) (Call Detail Reporting) See call accounting. (3) (Common Data Rate) A standard sampling rate for digital video for 480i and 576i systems. The rate is 13.5 MHz. See ITU-R BT. capture, processing and billing support system for ISPs, wireless carriers and other global operators seeking to offer IP-based services. The company has three principal lines of businesses: Public Internet telephony, private Intranet telephony networks and systems integration services. For more information on SCIES products and services, visit the SCIES web site at www.scies.com. About SecureFone America SecurFone America Inc. founded in 1996, is a telecommunications company See telecom company. specializing in prepaid communications service. SecurFone markets its prepaid services directly under the name Buy-the-Minute(TM). Through its prepaid network product, SFA See sales force automation. SFA - Sales Force Automation Network Services, SecurFone offers its prepaid wireless platform to other communications companies on a complete turnkey or component basis. SecurFone America is an OTC/BB stock and trades under the symbol SFAI. The company is based in San Diego. About TeleData World Services TeleData World Services is a provider of worldwide telecommunications solutions utilizing advanced telecommunication and computer technology to provide a wide range of cost effective systems and services to users both domestically and in other areas of the world. Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based on management's belief as well as assumptions made by, and information currently available to, management pursuant to the `safe harbor' provisions of 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. Actual results may differ materially from the results anticipated in these forward-looking statements as a result of a variety of factors. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion