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Merger Expected to Increase RNK's Revenue to $60 Million Annually; Will Double VoIP Network Footprint Worldwide
08.06.06
BEDFORD, MA -- RNK Telecom, a leading provider of PSTN and Voice-over-IP (VoIP) telephony services, today announced that it has entered into an letter of intent to acquire iOnosphere, Inc., a South Carolina-based provider of VoIP products and services, and international long distance wholesale carrier. The transaction is expected to be finalized on or before August 31, 2006.
"We are excited to welcome iOnosphere as part of RNK, and look forward to working with their highly talented and experienced team," said Richard N. Koch, president and chief executive officer, RNK Telecom. "Its widely known that IP telephony is continuing to gain momentum in European and Asian markets, and earlier this summer, analyst firm IDC predicted that the number of residential U.S. VoIP subscribers will grow from 10.3 million in 2006 to 44 million in 2010. Clearly, this technology is bringing about a worldwide paradigm shift in the way people communicate; the acquisition of iOnosphere is the next step in our long-term strategy to ensure that RNK remains a worldwide telephony leader - in both PSTN and VoIP."
As an international wholesale carrier, iOnosphere terminates telecommunications traffic to over 200 destinations for a variety of customers, including Tier 1 U.S. and European carriers. Of particular note, is that the combined entity's annual revenue is expected to exceed $60 million.
This transaction is a significant milestone in RNK's strategy for continued global expansion. Already an award-winning international provider of both traditional and IP voice products and services, RNK maintains a strong domestic presence in the US. Upon integration into RNK's corporate umbrella, iOnosphere will not only double RNK's VoIP footprint, but will also extend its reach to Asia, Africa, the Middle East, South America and other international destinations.
"The acquisition of iOnosphere will benefit both companies' customers by making available an expanded worldwide calling network and support infrastructure, and will provide access to both organizations' combined expertise in residential, small business and private-label wholesale markets," said Joy Tessier, executive vice president, RNK Telecom.
"In addition, this deal will create tremendous growth opportunities for both iOnosphere and RNK employees, as we have no plans for staff reduction."
"As a recognized industry leader, we look forward to joining the RNK Team, and to being an integral component of its continued worldwide expansion," said James Bailey, CEO, iOnosphere. "The joining of these two established telcos signifies great things - not only for our customers, but for the telecommunications market and its continued adoption of VoIP."
Purchase price and other related terms are not being disclosed at this time in consideration of the transaction's pending status.
RNK processes close to 10 billion minutes of use through its switches annually, and is the VoIP private label wholesaler of choice for more than 200 carriers and more than 110 resellers. Over the past 18 months, RNK has recorded very significant growth in number of subscribers nationwide, breadth and depth of its service offerings, in addition to a 100% increase in staffing, elevating total headcount to 140 employees.
iOnosphere is an experienced provider of VoIP telephone service to small business and residential users and is also a provider of international wholesale carrier services. Specific offerings include:
- Private Label Reseller Program
- International Wholesale Services
- Quality VoIP telephone service
- UNE-P replacement solution
About iOnosphere, Inc.
iOnosphere, Inc.,(iON) is a leading provider of VoIP telephone service and an international long distance wholesale carrier. iOn provides VoIP telephone service to small business and residential users via a broadband connection and an Internet access device utilizing the latest in softswitching technology. iOn was one of the first VoIP providers to pass extensive call control, call quality, and call volume testing as required by it's VoIP carrier partner. As an international wholesale carrier, iOn terminates telecommunications traffic to over 200 destinations for a variety of customers including Tier 1 U.S. and European Carriers.
Formed in 2000 by an experienced telecom team, iOnosphere is a privately held company with significant capital investments from Pharos Capital Partners and The Trelys Funds. During its short history, iOn has developed an outstanding reputation in the industry with premier customers, leading technology partners, and quality foreign route partners. For additional information, please visit www.ionosphere.net.
About RNK
RNK Inc., d/b/a RNK Telecom, is a global telecommunications services provider founded in 1992 and headquartered in Dedham, MA. Through its unmatched operational efficiency, industry expertise and technical innovation, RNK Telecom delivers superior products and profit margins to broadband providers, carriers and retail distributors worldwide.
RNKVoIP, a division of RNK Telecom, is the VoIP private label wholesaler for broadband providers, CLECs, cable providers and entrepreneurs. When its roots as a telephone company are combined with the company's technical innovation and operational efficiency, RNKVoIP delivers superior products and profit margins to its customers. For additional information call 888-642-9831 or visit www.rnktel.com, or www.RNKVoIP.com. For RNK 23-31 Communications Mostafa Razzak, 646-442-3361 m.razzak@23-31.com.
© the trelys funds
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