MicroHoldings US, Inc. Finalizes Agreement To Acquire GDS, German Telecommunications Company
Last Update: 9:34 AM ET Jun 1, 2007
SAN DIEGO, Jun 01, 2007 (BUSINESS WIRE) -- MicroHoldings US, Inc. (Pink Sheets:MHUI) today announced that it has completed the acquisition of the German telecommunications company, GDS Global Destination Services, GmbH, in a transaction involving cash and stock. GDS is an established carrier services company based in Frankfurt, Germany, one of the leading hubs for telecommunications service in Europe. GDS provides interconnect and overseas telecommunications service for more than a dozen major carriers as well as supports a variety of prepaid services.
According to unaudited financials provided by GDS, GDS produced $4.77 million in gross revenues for 2006 and posted a profit of $248,000. GDS grossed $3.3 million in 2005 and $5.4 million in 2004. The company posted modest profits of $70,000 and $52,000 in 2005 and 2004 respectively.
"GDS is a first class operation that gives MHUI a profitable base of profitable operations on which we can grow and launch our new services in the European markets," stated Joe Putegnat, Director of Operations for MHUI. "We believe that by working together as one company, we can increase revenues, improve efficiencies and look for new areas of growth more aggressively."
Stated Helmut Uwe Decher, Managing Director of GDS, "We are excited to join MicroHoldings and to be part of what we believe will be the new standard in carrier services. There is tremendous opportunity for growth in Europe and other areas where we have established a presence. We look forward to creating a company that will compete on a worldwide level in growing areas of telecommunications."
In return for receiving 100% of the stock of GDS, MHUI will issue 500,000 shares of Preferred Stock to GDS. The Preferred stock will convert in two years time to 1.00 worth Euro of MHUI common stock per preferred share. The Agreement also calls for MHUI to pay GDS 300,000 Euros within 120 days.
MHUI also owns the subsidiary, XChangeTel, a provider of international calling services based in San Diego, California. More information on the MicroHoldings US, Inc. can be found at www.microholdings-us.com.
Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of MHUI are "Forward-Looking Statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "believes," "anticipates," "intends," "plans," "expects," and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future MHUI actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance, or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions made and expectations reflected in the forward-looking statements are reasonable, there is no assurance that the underlying assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and MHUI has no specific intention to update these statements.
SOURCE: MicroHoldings US, Inc.
MicroHoldings US, Inc. Jeff Flannery, 619-342-8096 Copyright Business Wire 2007
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