InPhonic to Sell Liberty Wireless; Vaya Signs Letter of Intent to Acquire InPhonic's MVNO, Liberty Wireless
October 24 2005 - 5:02AM
Business Wire
InPhonic, Inc. (Nasdaq: INPC), a leading online seller of wireless
phones and service plans, today announced that it has signed a
letter of intent to sell certain assets of its MVNO, Liberty
Wireless to Vaya. The sale of Liberty Wireless will enable InPhonic
to streamline and simplify its businesses, and improve operational
efficiencies across the Company. The transaction, which is subject
to the signing of a definitive agreement and customary closing
conditions, is expected to close in the fourth quarter of 2005.
Under the operational terms of the agreement, Vaya would acquire
the popular Liberty Wireless brand, the Hispanic-targeted, Spanish
language Viva Liberty(SM) brand, and the active customers in
Liberty's subscriber base. The customers would not experience any
change in service, billing or coverage, as Vaya would continue to
utilize InPhonic's MVNE platform on a per unit software license
basis. InPhonic would continue to deliver the systems platform for
procurement, activation, billing, and customer care, as well as
self-service platforms based on web and speech recognition
technology. InPhonic has a strong history of successful MVNE and
mobile carrier deployments that includes AT&T and Hawaiian
Telcom. "The sale of Liberty Wireless combined with the new
software licensing relationship would mark a significant milestone
for InPhonic, as we transition our MVNO business unit from a
subscriber to a software-based business," said David A. Steinberg,
InPhonic's Chairman and CEO. "Vaya's acquisition of Liberty would
allow InPhonic to focus on and grow both its core Wireless and
Activations Services, and MVNE business units while dramatically
simplifying group management and improving operational efficiencies
across the Company. In addition, we believe this transaction would
improve our overall gross margins." Launched in 2002, Liberty
Wireless (www.libertywireless.com) is one of America's leading
MVNOs and provides pay-as-you-go nationwide cell phone service,
delivering affordable, flexible and reliable all-digital network
coverage. Liberty Wireless combines the best features of a major
national wireless service provider -- nationwide, digital coverage
and low-cost talk time -- with the flexibility, simplicity, and
built-in cost controls of prepaid service. In its history, Liberty
Wireless has received critical acclaim and awards for its customer
management and subscriber-friendly technologies. Financial terms
related to the sale of Liberty Wireless will be provided upon the
closing of the transaction. 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
(www.wirefly.com), a leading mobile phones and wireless plans
comparison site that was awarded "Best of the Web" by Forbes
magazine in 2004. InPhonic also delivers 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
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 uncertainty as to whether or when the
definitive agreement relating to the sale of Liberty Wireless will
be signed and closed. 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.
Inphonic (NASDAQ:INPC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Inphonic (NASDAQ:INPC)
Historical Stock Chart
From Oct 2023 to Oct 2024
Real-Time news about Inphonic (MM) (NASDAQ): 0 recent articles
More InPhonic, Inc. News Articles