Xfone, Inc. (XFNE) has announced a merger between its wholly-owned subsidiary, Xfone USA Inc. and WS Telecom Inc., a telecommunications service provider based in Jackson, Mississippi. The merger includes WS Telecom's two wholly-owned subsidiaries eXpeTel Communications Inc. and Gulf Coast Utilities Inc.
Xfone will issue a number of restricted shares of its common stock with a market value of $2.2 million.
Xfone president and CEO Guy Nissenson said, "We are extremely pleased with this opportunity to establish Xfone's presence in the US telecom market. We hope that our business in the United States will open the door to further expansion, both internally and through the pursuit of additional acquisition opportunities. We found in WS Telecom the key ingredients that we sought in a target company: a capable and experienced management team, a strong recurring revenue base driven by both residential and business customers, a comprehensive service offering including local, long distance, wireless and Internet, and state-of-the-art facilities with an advanced infrastructure. Additionally, WS Telecom's business model lends itself well to our current strategy."
During 2003, WS Telecom generated revenues of approximately $5 million. WS Telecom provides residential and business customers with local and long distance telephone services, as well as cable television and high speed Internet to planned and multi-dwelling apartment communities.
Xfone recently applied for a license to establish an international telecommunications service business in Israel.
Published by Globes [online] - www.globes.co.il - on Wednesday, June 02, 2004