InPhonic to Acquire VMC Satellite for $10.7 Million
22 April 2005 - 12:29AM
PR Newswire (US)
InPhonic to Acquire VMC Satellite for $10.7 Million - InPhonic
Extends Service Offering with Acquisition of Leading Online
Marketer of Satellite Services - WASHINGTON, April 21
/PRNewswire-FirstCall/ -- InPhonic, Inc. (NASDAQ:INPC), a leading
online seller of wireless services and products, today announced
that it has reached a definitive agreement to acquire certain
assets of privately held VMC Satellite Inc., a leading online
marketer of digital broadcast satellite services. The acquisition
will enable InPhonic to expand its service offerings, creating
additional revenue opportunities from the over twelve million
consumers that visit its portfolio of Web sites and marketing
partners each month, while allowing VMC to continue to scale its
business with the resources and expertise of InPhonic. InPhonic
expects this transaction to be accretive to 2005 earnings. The
acquisition of VMC enables InPhonic to integrate a complementary
service offering that will strengthen InPhonic's position as a
leader in the growing market for online customer contract
acquisition. This acquisition combines InPhonic's market leading
position in online customer acquisition for the wireless industry
with that of VMC's leadership in digital broadcast satellite.
InPhonic also believes it will be able to combine its expansive
online marketing channels along with VMC's 170,000 affiliates to
sell wireless services to a broader online audience. "The
acquisition of VMC Satellite will strengthen InPhonic's brand
portfolio and allows us to leverage our e-commerce platform in a
horizontal direction with a new product offering for the first
time," said InPhonic Chairman and CEO David A. Steinberg. "VMC
allows InPhonic to offer the millions of visitors we attract each
month to our Web sites additional buying opportunities, which we
expect will further reduce our customer acquisition costs and
improve the sales yield of our platform." "The VMC business model
is an excellent fit with InPhonic, a company we have long admired,"
said Rick Rahim, President and founder of VMC Satellite. "The
combination of these companies will allow VMC's marketing partners
and customers to benefit from InPhonic's broad relationships with
all of the major wireless carriers in the U.S., providing them with
an expanded product offering and enhanced customer experience."
Based just outside of Washington, D.C., VMC is a leading online
seller of digital broadcast satellite service for DISH Network.
InPhonic is also pleased to announce that VMC senior management
will be retained including VMC's co-founders and brothers, Rick and
Zee Rahim. Rick Rahim will be joining InPhonic as President of the
new Satellite Services division. Zee Rahim will be joining InPhonic
as the Senior Vice President for Operations for the new division.
InPhonic will pay cash and issue stock for an aggregate value of
$10.7 million. At the closing, the shareholders of VMC will receive
$3.5 million in cash and $7.2 million of InPhonic's common stock.
The transaction is expected to be completed in the second quarter
of 2005 and is subject to customary closing conditions. More
information relating to the impact of the acquisition on InPhonic's
2005 financial performance will be provided at the time of the
Company's first quarter 2005 earnings release. About InPhonic
Headquartered in Washington, D.C., InPhonic, Inc. (NASDAQ:INPC) is
a leading online seller of wireless services and products. InPhonic
sells these services and devices, and provides world-class customer
service through websites that it creates and manages for online
businesses, national retailers, member-based organizations and
associations under their own brands. InPhonic also operates
Wirefly, a leading mobile phones and wireless plans comparison site
that was awarded "Best of the Web" by Forbes magazine in 2004.
Today, InPhonic owns and operates Liberty Wireless, a leading MVNO
and can deliver a full range of mobility solutions to enterprise
clients through its Mobile Virtual Network Enablement (MVNE)
platform. In 2004, InPhonic was selected #1 company of the year on
the Inc. 500 -- Inc. Magazine's list of the fastest-growing
privately held companies in the United States. More recently,
InPhonic was named T-Mobile's Internet Partner of the Year for
2004. For more information on the company, its products and
services, visit the InPhonic Corporate Web site at
http://www.inphonic.com/. "Safe Harbor" Statement -- Under the
Private Securities Litigation Reform Act of 1995, this press
release may contain forward-looking statements that involve risks
and uncertainties, including, but not limited to statements
regarding the future financial impact of the VMC acquisition.
Important factors, which could cause actual operating results to
differ materially from those in the forward-looking statements, are
detailed in filings with the Securities and Exchange Commission
made from time to time by the Company. This press release and
statements are current as of the date of the individual
announcements and the Company undertakes no obligation to publicly
release any revisions to any forward-looking statement to reflect
events or circumstances after the date thereof or to reflect the
occurrence of unanticipated events. DATASOURCE: InPhonic, Inc.
CONTACT: Tripp Donnelly, Vice President, Corporate Communications,
+1-202-333-0001, Web site: http://www.inphonic.com/
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