Next generation telecom vendor group Emblaze (LSE: BLZ) today announced that Emblaze Mobile, its mobile handset design and manufacturing subsidiary, has acquired a strategic interest in Global Telecoms Distribution (GTD), whose trading name is European Telecom.
The investment amount was not disclosed. Emblaze stated that the impact of the purchase on cash from group reserves was negligible.
GTD a leading European distributor of multimedia handsets with a three and a half year trading history and 100-strong staff operating mainly from the UK with offices and operations across Europe. GTD enjoys long-term relationships with major retail, distance-sales and independent dealer channel partners, as well as networks including 3, O2, Orange, T-Mobile, Vodafone and others.
Emblaze stated that the transaction is in line with Emblaze Mobile's strategy to become a major supplier of advanced handsets to European mobile network operators and is expected to provide the company with greater control and flexibility over its handset distribution as well as enhance its revenue and margins over time.
In addition, the deal will provide Emblaze Mobile with access to GTD's customer base and European network of operator clients. As a result, the deal will accelerate Emblaze Mobile's expansion in Europe as its prime target market.
Emblaze Mobile CEO Laurence Alexander said, "The purchase of a strategic stake in GTD is part of our mission to bring Emblaze's advanced mobile technologies and handsets to the European consumers and is another major step in creating long term value for our shareholders."
The Emblaze group of companies comprises Emblaze Mobile, which specializes in new breed handset design and manufacturing; Adamind (LSE: ADA), which specializes in content adaptation (transcoding) for wireless operators; Visual Defence (LSE: VDI), a provider of wireless and IP video solutions for military and homeland security markets; Emblaze VCON, a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks and Orca Interactive (LSE: ORCA), provider of Interactive Television IPTV middleware for video on demand (VOD) and broadcast services, aimed at Telecom, cable and xDSL operators.
Emblaze went public on the LSE in 1996 and has offices in the United States, Canada, United Kingdom, China, Korea and Israel.
Published by Globes [online], Israel business news - www.globes.co.il - on Tuesday, December 13, 2005