TMCnet News
VoIP, Inc.’s Acquisition of WQN VoIP FinalizedBy TED GLANZER
TMCnet Communications and Broadband Columnist
VoIP, Inc.’s acquisition of WQN, Inc.’s VoIP business and assets was completed on Oct. 5, the companies announced on Tuesday.
Pursuant to the Asset Purchase Agreement executed on Aug. 3, VoIP, Inc. will issue a $3,700,000 Convertible Note, 1,250,000 shares of Common Stock and a warrant to purchase 5,000,000 shares of Common Stock for nominal value. The Convertible Note will convert into Convertible Common Stock after a charter amendment is approved by VoIP, Inc.
The acquired business, which had $15.2 million in revenues in 2004, will operate as a wholly owned subsidiary of VoIP, Inc. “We’re happy to complete this important acquisition, which substantially enhances our international VoIP business, and provides us with an additional 60,000 retail customers using various VoIP services that will be integrated into our VoiceOne network,” VoIP, Inc.’s CEO Steven Ivester said in a statement.
Margins will increase by up to 17 percent by moving WQN’s VoIP traffic to the VoiceOne private network, Ivester said.
In the past 18 months, VoIP, Inc. has acquired four companies, including Volo and VoIP Americas, all of which, according to Ivester, have given the company $50 million in consolidated sales.
By shedding its VoIP business, WQN said in its statement that it will “reposition” itself as an operating company that will acquire and operate small to middle market companies in the financial services, technology/telecommunications, business services and business distribution and real estate industries.
On Monday, VoIP, Inc. announced that it has interconnected its private VoiceOne network with Stealth’s Voice Peering Fabric. What advantages and business implications do carrier-level peering points offer over dedicated fiber? How secure are peering connections? For the answers to those questions and more, mark your calendar to attend the VoIP Peering Summit at this fall’s INTERNET TELEPHONY Conference & Expo, which runs October 24-27, at the Los Angeles Convention Center.
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Ted Glanzer is assistant editor for TMCnet. For more articles by Ted Glanzer, please visit:
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