Inphonic (NASDAQ:INPC)
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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/