Elephant Talk Communications Corp. (NYSE: ETAK), formerly (NYSE Amex: ETAK) is a leading international provider of mobile networking software and services. The Company’s mission is to provide a single service, fully enabling and securing the mobile cloud.
Elephant Talk empowers Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs) by providing a cloud based mobile communications infrastructure, operating software and managed services, based mostly on company developed and owned software. We enable these Mobile Operators and Virtual Network Operators by offering a full suite of products, delivery platforms, support services, superior industry expertise and high quality customer service without substantial upfront investment.
ETAK announced today its plans to acquire 100% of the assets of Telnicity, LLC, a U.S. MVNE/MVNO enabler company headquartered in Oklahoma City, Oklahoma in an all-equity transaction.
The transaction value is approximately $1 million, with Elephant Talk issuing 1 million shares, that will be subject to a lock-up agreement restricting sale or disposition of the shares for 18 months, of common stock at closing.
According to the terms of the acquisition agreement, Elephant Talk will acquire all of the assets of Telnicity, LLC, a U.S. MVNE/MVNO enabler company including the company’s existing customer contracts, carrier agreements, and access to telSPACE and mCASH, Telnicity’s propriety turnkey back office infrastructure and billing systems. Telnicity’s 6 full-time equivalent employees will remain in their current positions.
Steven van der Velden, Chairman and Chief Executive Officer of Elephant Talk Communications, commented:
We will work on a seamless and efficient global platform for MNO’s, MVNE’s, and MVNO’s to operate by taking advantage of the technologies of both companies. Telnicity’s relationships with several North American based telecommunications companies provide a head start for the launch of Elephant Talk’s services into the U.S. mobile telecommunication market. In addition, Telnicity’s existing customer base will be able to leverage Elephant Talk’s technology and telecommunications relationships to offer more complete international calling and roaming packages.