SEATTLE-Midcom Communications Inc. intends to acquire all the outstanding securities of Cel-Tech International Corp. of Bellevue, Wash., in exchange for about 142,000 shares of unregistered Midcom common stock.
The acquisition, valued at more than $2 million, will be accounted as a pooling of interests. A definitive agreement is expected in the next two weeks, Midcom said.
Cel-Tech is the oldest and largest reseller of AT&T cellular service in the Pacific Northwest, according to Midcom.
“Not only can Midcom now offer customers a range of voice and data long-distance service, but a proven package of cellular products as well,” said Ashok Rao, Midcom’s president and chief executive officer. “We look forward to building upon Cel-Tech’s regional success by bringing cellular services to our existing and future customers across the country and around the world,” said Rao.
Cel-Tech President Richard John said the acquisition of Cel-Tech by an international telecom company is a perfect way to unite cellular and long distance services for customers.
“The resources and experience of Midcom will allow Cel-Tech to take a giant cellular step nationally and internationally,” John said.
Cel-Tech staff will move to Midcom’s Seattle headquarters; John will serve as a Midcom consultant.
Founded in 1989, Midcom provides a number of telecommunications services to small- and medium-sized companies.
