XFONE INC to acquire NTS Communications.
TELECOMWORLDWIRE-24 August 2007-XFONE INC to acquire NTS Communications(C)1994-2007 M2 COMMUNICATIONS LTD http://www.m2.com
XFONE Inc (AMEX:XFN;TASE: XFN), a voice, video and data communications services provider, announced on Thursday (23 August) that the company has signed a definitive agreement to acquire NTS Communications Inc, a provider of integrated voice, data and video solutions in West Texas, US, for USD42m.
NTS generated annualised revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of approximately USD6m and USD9.1m, respectively, as of 30 June 2007.
The acquisition is expected to significantly expand XFONE's service area. It will also create a diversified communications services company with combined annualised revenues and EBITDA exceeding USD114,m and USD13m, respectively, based upon unaudited results for the first six months of 2007.
XFONE anticipates that the acquisition will enhance its revenues, cash flows, and profitability.
XFONE is expected to finance the acquisition primarily with debt financing. The company said that it is currently in discussions with potential lenders to close a financing in conjunction with the completion of the acquisition.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 24, 2007|
|Previous Article:||INTAC International and HSW International merger to close on 1 October.|
|Next Article:||Vitesse to sell Storage Products business and obtains new debt financing.|