Printer Friendly

U.S. LONG DISTANCE CORP. ANNOUNCES ITS INTENT TO ACQUIRE TELECOM WEST

 SAN ANTONIO, Texas, Aug. 26 /PRNewswire/ -- U.S. Long Distance Corp. (NASDAQ/NMS: USLD) announced today that it signed a letter of intent to acquire Telecom West Incorporated (Telecom), a privately owned direct- dial long-distance services company with headquarters in Portland, Ore. USLD anticipates that the acquisition will be completed on October 1, 1993.
 Parris H. Holmes, Jr., Chairman and Chief Executive Officer of USLD, stated, "This is an extremely important strategic move for USLD because it would allow us to capitalize on our recent expansion in the Pacific Northwest where we are now offering direct-dial long-distance services. Telecom's existing traffic would be assimilated into our newly installed DEX 600 switch in Seattle, Wash., enhancing the cost effectiveness of USLD's underlying network in that region. Telecom's excellent management team would remain in place, ensuring a smooth transition and providing Telecom's existing client base with the same level of service and support they have been receiving."
 The letter of intent provides that USLD will acquire Telecom for 270,000 shares of USLD common stock in a transaction that would be accounted for as a "pooling of interests." The acquisition is subject to certain conditions, including, among other things, the negotiation, execution and delivery of a definitive acquisition agreement and the satisfactory completion of due diligence. Telecom's revenues for calendar 1992 and the first six months of 1993 were $6.0 million and $3.2 million, respectively. Telecom estimates that revenues for calendar 1993 would be $6.9 million.
 Ed Lassman, President and founder of Telecom, said, "We are excited about joining the USLD team and being part of a rapidly expanding, national telecommunications company. By combining our forces, we would be able to offer our clients new products and services."
 Mr. Holmes added, "When USLD completed its recent public offering, we announced that we would begin actively seeking potential acquisitions in the direct-dial long-distance services industry. This is consistent with USLD's strategy to complement its strong internal growth with expansion through acquisitions. USLD is committed to becoming a major presence in the telecommunications industry, and this acquisition represents an important step towards achieving this goal."
 Telecom was established in 1983. In addition to its main office in Portland, the company has branch offices in Medford and Eugene, Ore.
 USLD is a fully integrated long distance telecommunications and information services company with three primary areas of business: regional direct-dial (one-plus) long distance services in areas of the Southwest and Pacific Northwest; national operator services for the hospitality and pay telephone industries; and billing clearinghouse and information management services for operator services and direct-dial long distance companies.
 -0- 8/26/93
 /CONTACT: Tabitha Zane of U.S. Long Distance Corp., 210-525-6228/
 (USLD)


CO: U.S. Long Distance Corp.; Telecom West Incorporated ST: Texas, Oregon IN: TLS SU: TNM

LG -- NY013 -- 6039 08/26/93 09:29 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 26, 1993
Words:474
Previous Article:NEW ARMY CONTRACT UTILIZES RAYTHEON SENSOR TECHNOLOGY
Next Article:NEW TECHNOLOGY TO CLEAN UP CONTAMINATED SOILS IS WORKING AT SUPERFUND SITE IN WINSLOW TOWNSHIP, NEW JERSEY
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters