Flint Telecom Group, Inc., an International Telecoms Technology and Services Organization, today announces that it has signed a Letter of Intent to acquire 100% of a turnkey VoIP company providing services to Small and Medium Enterprises (SMEs) in the United States. Following successful completion of the necessary due diligence, which is already underway, the transaction is expected to close within the next 60 days.
Completion of the acquisition will bring immediate and profitable annual revenues to the group in excess of $2 million; the target company is currently growing at over 50% per year. When consolidated with other pending acquisitions in the VoIP market, the operating costs will be reduced due to shared common services and network cost reductions, so generating more positive income from the existing revenue streams.
The market for VoIP services in the U.S. continues to grow rapidly as it has become more mainstream with the Telecoms Industry Association seeing the VoIP share of residential and business phones lines reaching 37% and 10% respectively by 2015.
Bernie Fried, President and COO of Flint Telecom Group, commented,"This is the first announcement from a number of ongoing discussions with similar providers and marks a first step in our recently announced growth strategy for our VoIP services. This company has some significant intellectual property and has created some very exciting applications in automated dialing and high volume call control in a high value market. Globally, SMEs account for 99% of business numbers and 40% to 50% of GDP. We still expect to acquire over 10 companies throughout 2011 that we expect will deliver sustainable profitability for the group from mid 2011. These companies are unable to achieve sufficient scale on their own but they have achieved the hardest part in growing any business, acquiring customers. By consolidating the various business operations under one roof, duplicate costs are eliminated and network elements reduced to achieve greater returns from the existing revenue streams."
Vincent Browne, Chairman and Chief Executive of Flint Telecom Group, said,"We look forward to finalizing this transaction as soon as possible and to adding additional ones in the near future. One of the most exciting things to come from these acquisitions is the ability to add additional value added services, such as our nationwide wireless services set to launch this month as planned, and integrate them with existing customer systems to create a seamless communications platform. This allows users to have full mobility but still be connected as if sitting at their desks. The market for these services continues to grow rapidly as the use of Smartphones becomes commonplace. We also plan to fund most of the acquisitions with long-term debt and deferred stock grants as much as possible that will reduce the funding we need from new share sales and deliver a better return for our shareholders."
About Flint Telecom Group, Inc.
Flint Telecom Group, Inc. (flinttelecomgroup.com) is a fast growing Telecoms Technology Organization with a portfolio of companies that deliver next-generation IP communications Products and Services. The Company was founded by telecom and technology entrepreneurs with a proven track record in building global technology companies. Flint Telecom has grown both organically and through corporate activity and is traded on the OTC Bulletin Board® (OTCBB) under the ticker FLTT.OB.
Forward Looking Statements
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including risks and uncertainties associated with the integration of businesses following an acquisition, the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.