Vyke Communications has entered into a letter of intent to acquire 100% of the outstanding share capital of a UK-based retail voice over internet protocol service provider.
The acquisition is subject to due diligence and the final approval of the Board of Vyke. The acquisition is scheduled to be completed before the end of 2007. The UK-based retail voice over internet protocol service provider (Target) has successfully implemented a sales strategy resulting in approximately 200,000 paying retail VoIP users worldwide, with circa 150 million paid minutes of use per year.
If completed, Vyke will acquire the Target for a total consideration of GBP3.5 million, payable in shares. The acquisition of the Target would constitute a substantial transaction under the AIM Rules for Companies.
The Target is expected to enhance Vyke’s global distribution abilities in key markets within the regions of Europe, the Middle East and Africa and to provide a hub for further organic and acquisition-based growth during 2008. In addition, this acquisition, if completed, will further consolidate Vyke’s position as the leading mobile VoIP service provider by offering a significant increase in the number of in-house customers ready to be converted to Vyke’s Mobile VoIP service.