Vyke Communications has acquired Callserve Communications Limited, a UK-based telecommunications service provider.
The deal is expected to be sealed by 30 January 2008, for a maximum consideration of 2.9 million.
The acquisition of Callserve compliments and expands on Vyke’s existing operational base in the UK and will enable greater penetration into the UK market. Callserve also has existing African and Middle Eastern distribution networks, where customers will benefit from conversion to the Vyke product suite.
Callserve’s total gross revenues for the calendar year ending 31 December 2007 were 8.5 million and Net liabilities at completion are estimated at around 1m.
The consideration will be satisfied by the issue and allotment of up to 4,004,602 ordinary shares in Vyke, with lock in periods of up to one year for the majority of the shares.
“The UK market represents a very exciting opportunity for Vyke, and the addition of Callserve provides us with key wholesale VoIP network infrastructure and additional domestic operational resources. The acquisition also provides the opportunity to channel Callserve’s existing customer base into the Vyke product suite and I am confident that this will help to drive Vyke’s continued long term growth,” says Tommy Jensen, executive chairman, Vyke.