Aug 27, 2001 : BCE and VarTec Agree on Excel Sale
📅 - Bell Canada Enterprises (bce.ca) andVarTec Telecom, Inc. (vartec.net) have announced the signing of definitive agreements for the sale of Excel Communications' North American operations to VarTec. The announcement was made in Dallas yesterday at Excelebration, Excel's annual meeting of independent representatives.
Dallas-based Excel Communications (excel.com) wasacquired by BCE in 2000 as part of its purchase ofTeleglobe Inc. Excel, with year 2000 revenues inexcess of US$1 billion, uses the power of networkmarketing and its force of independent representativesto deliver long distance, paging, wireless andInternet products and services primarily throughoutNorth America. VarTec Telecom, also based in Dallas,is considered a pioneer and the leader in the "dialaround" long distance services segment. In addition todial around revenues in excess of US$1 billion in theUnited States and Europe, VarTec markets bundled longdistance, local, private line and data services in theUnited States.
"This collaborative effort will create a more powerfulforce within the telecommunications industry as amajor player in the consumer sector with combinedrevenues exceeding $2 billion," said A. Joe MitchellJr., founder and chairman of VarTec. "The acquisitionof Excel's network will essentially double the numberof VarTec switches while also doubling our networkcapacity."
The purchase price, estimated to be approximately US$250 million, will be based on Excel's actual 2001 yearend financial results and will be paid in the form ofa five-year interest-bearing promissory note. The saleis binding on both companies and is subject only toregulatory and other approvals.
"We believe VarTec represents an ideal partner astogether with Excel they represent a dynamic player inwhat is a highly competitive marketplace," said BillAnderson, president of BCE Ventures, which has beenmanaging the Excel investment. "Excel and its networkof independent representatives face a bright future asa result of this agreement with VarTec."
Dallas-based Excel Communications (excel.com) wasacquired by BCE in 2000 as part of its purchase ofTeleglobe Inc. Excel, with year 2000 revenues inexcess of US$1 billion, uses the power of networkmarketing and its force of independent representativesto deliver long distance, paging, wireless andInternet products and services primarily throughoutNorth America. VarTec Telecom, also based in Dallas,is considered a pioneer and the leader in the "dialaround" long distance services segment. In addition todial around revenues in excess of US$1 billion in theUnited States and Europe, VarTec markets bundled longdistance, local, private line and data services in theUnited States.
"This collaborative effort will create a more powerfulforce within the telecommunications industry as amajor player in the consumer sector with combinedrevenues exceeding $2 billion," said A. Joe MitchellJr., founder and chairman of VarTec. "The acquisitionof Excel's network will essentially double the numberof VarTec switches while also doubling our networkcapacity."
The purchase price, estimated to be approximately US$250 million, will be based on Excel's actual 2001 yearend financial results and will be paid in the form ofa five-year interest-bearing promissory note. The saleis binding on both companies and is subject only toregulatory and other approvals.
"We believe VarTec represents an ideal partner astogether with Excel they represent a dynamic player inwhat is a highly competitive marketplace," said BillAnderson, president of BCE Ventures, which has beenmanaging the Excel investment. "Excel and its networkof independent representatives face a bright future asa result of this agreement with VarTec."
Reads: 1948 | Category: General | Source: TheWHIR : Web Host Industry Reviews
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