WASHINGTON-Acquisition news continues its frantic pace with InPhonic Inc. and SmartServ Online Inc. both announcing purchases.
First, Internet phone retailer InPhonic said it bought privately held A1 Wireless USA Inc., which also sells mobile phones over the Internet, for $20.9 million in cash and stock. InPhonic said the purchase will increase its forecasted 2005 results by a minimum of $30 million in revenue and $3 million in earnings before interest, taxes, depreciation and amortization “prior to realized synergies.”
“The acquisition of A1 strengthens InPhonic’s brand portfolio. It allows A1’s marketing partners and customers to benefit from InPhonic’s relationships with all the major wireless carriers in the U.S., providing a broader product offering and enhanced customer experience,” said David Steinberg, InPhonic’s chairman and chief executive officer. “We took advantage of the opportunity to acquire a widely recognized brand, a great management team and leading online wireless marketer.”
The deal comes shortly after InPhonic’s successful initial public offering, and is one of many acquisitions the company has conducted during the past several years. Last week, the company said it would partner with RadioShack to help the retailer sell wireless service online.
Separately, mobile virtual network operator SmartServ said it purchased KPCCD Inc., a New York City-based distributor of international prepaid calling cards. SmartServ did not disclose its purchase price, but said the company would add an extra $2 million in monthly revenue.
“We are very excited about the KPCCD acquisition. KPCCD adds international long-distance products to the bundle of services SmartServ will be offering with our recently announced Uphonia prepaid mobile-phone products,” said Robert Pons, SmartServ’s chief executive officer. “KPCCD also provides SmartServ with direct access to a broad distribution network that we will use to rapidly build both our prepaid wireless and international long-distance businesses.”
