PLYMOUTH MEETING, Pa.-Mobile virtual network operator and content provider SmartServ Online Inc. signed a letter of intent to acquire New York-based Telco Group Inc. and affiliates, which provide prepaid wireless telecommunications services, prepaid international long distance, nationwide dial-around long distance and nationwide dial-up high-speed Internet services. SmartServ, which recently announced plans to begin offering prepaid wireless services using Sprint PCS’ network, said the acquisition will add more than $300 million in annual revenue.
“A combination of the two companies would bring together the network infrastructure of Telco Group Inc. and the sales and distribution of its affiliates, with the mobile content technology, management expertise, and marketing and branding resources of SmartServ,” said Robert Pons, chief executive officer of SmartServ. “The combined resources would create a company with competitive advantages in both the prepaid wireless and prepaid international business.”
Financial terms of the deal were not released.
Just last week, Smartserv retained Jefferies & Co. Inc. to advise it on acquisition possibilities.<p
