World VoIP NewsThe merge of two VoIP services providers in sake of Unified Communications
The merge of two VoIP services providers in sake of Unified Communications
Enterprise ‘’Warwick Valley Telephone Company’’ a prominent regional telecommunications services provider in southern Orange County, New York and some geographical sections of central New York and New Jersey, announced that it has certain intentions to purchase and acquire completely full operational asset of enterprise Alteva, which is Unified Communications ("UC") and cloud based applications provider in North America, being reported as a true giant in industry of hosted Voice over Internet Protocol ("VoIP") industry, having demonstrated combined value of stock about $17 million
The Board of Directors of the Company and the Board of Managers of Alteva, LLC have both approved the acquisition, which is subject to regulatory approvals and certain other customary conditions. The transaction is expected to close in the third quarter of 2011. As the organic part of expected acquisition, ‘’Warwick Valley Telephone Company’’ will integrate its current Competitive Local Exchange Carrier ("CLEC") business, USA Datanet, with the ongoing and existing arrays of Alteva. This synergy will enable the Company to better capitalize on the growth that both service providers had been went through within last year independently, when rapidly expanding market for UC and hosted solutions for business and enterprise customers ensured the backup for such a performance . It is anticipated that the Alteva acquisition will increase WVT's consolidated revenues by approximately 30% on an annual basis, with an even greater percentage improvement in operating cash flow growth, before consideration of cost savings associated with expected integration synergies and the expected increase in business volume. "This is an extraordinary merge that will significantly contribute to our power and performance in the marketplace, favorably impact our highly skilled workforce and the services delivered to our customers, and, most importantly, support our mission to deliver value to our shareholders," said Duane W. Albro, President and CEO of Warwick Valley Telephone Company. "We believe we have found a strong partner in Alteva, a fast growing UC service provider which has a complementary business, a well regarded brand, and shared values that will both benefit from and contribute to WVT's future success."
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