25th March 2011. US based Quamtel Inc has signed a letter of intent to acquire Australia’s SavvyTel Communications Pty Ltd. The definitive agreement is expected to be signed in April 2011.
Under the purchase agreement, QuamTel Inc. will acquire 100% of the stock of SavvyTel Communications Inc. in exchange for the issuance of 5.5 million common shares of QuamTel, Inc. QuamTel’s common shares are listed on the NASDAQ Over-the-Counter Bulletin Board Stock Market (OTCBB: QUMI) and the transaction is valued at US$3.4 million in stock on March 23, 2011. The definitive agreement is expected to be signed in April 2011
Post the acquisition, SavvyTel will be a wholly owned subsidiary of QuamTel Inc. Commenting on the acquisition, QuamTel CEO, Stuart Ehrlich, said the combined strengths of the two companies will provide them with strategic reach internationally. Ehrlich stated that the acquisition provides QuamTel with a large subscriber base to market other synergistic QuamTel products.
Such synergistic QuamTel products include the global calling direct from the Australian subscriber handsets, by interconnecting the ‘QAN’, Quamtel Application Network, in the United States with the SavvyTel communications network in Australia, said Ehrlich.
Krishan Deegalla, technical director at SavvyTel Communications, noted it is one thing to have the carrier grade network to support growth, but it is something else to have the engineering and development talent to help companies grow and become industry leaders. Deegalla stated that SavvyTel’s team now consists of some of the industry’s best and most forward thinking minds.
According to QuamTel, there is an increasing number of mobile users in emerging markets like China, India, Africa and Eastern Europe. The firm’s strategy is geared towards meeting this demand, having spent millions in development and planning over the past three years for this revolution.
More than 250 million people purchased smartphones in 2010, and it is estimated that in 2011 the number will grow to 428 million – that’s more smartphones being sold than personal computers. QuamTel expects to benefit from the demand by placing itself strategically to address the need for affordable mobile devices and service plans.
QuamTel, Inc. is an emerging global service provider of superior quality Voice Over IP based solutions offering residential and business customers more user friendly and affordable ways to communicate. QuamTel, Inc., through its subsidiaries, provides a comprehensive portfolio of M2M integrated data services and wireless broadband technologies with a focus on device management, infrastructure design and deployment, as well as engineering design, manufacturing and distribution of wireless broadband technology.
SavvyTel Communications was founded in 2005 and built its business on sound fundamentals and great products, offering customers convenient recharge options, no contracts, low rates, reliable service and number portability. SavvyTel operates on one of the largest and most reliable networks in Australia, The OPTUS Network.