COLUMBUS, Ohio-SmarTalk TeleServices Inc. acquired Worldwide Direct, a direct-to-consumer prepaid cellular phone distributor, in a stock-for-stock transaction that provides it with terminal-based prepaid capability.
Combined with SmarTalk’s alliance with Boston Communications Group and the recent acquisition of Debit Cellular Network Technology, the Worldwide Direct acquisition could position SmarTalk as a national leader in the wireless prepaid cellular market, SmarTalk said.
SmarTalk will issue 2.71 million shares of its common stock to the current shareholders of Worldwide Direct, and also will assume about $1 million in Worldwide Direct’s debt. SmarTalk plans to account for the transaction as a pooling of interests.
“This unit will not only drive the sale of cellular handsets, but will also reinforce the company’s brand strategy through its extensive broadcast and print media program,” said Erich Spangenberg, chief executive officer of SmarTalk.
SmarTalk aims to have its prepaid card a “nationally branded currency” for wireless prepaid calling.
