Y3K Acquires Material Assets of Fox Communications Jump to first matched term
SEATTLE, WA, Jan 14, 2004 /PRNewswire-FirstCall via Comtex/ -- Y3K Secure Enterprise Software, Inc., (OTC/BB: YTHK), an end-to-end unified communications and technologies company serving the small to medium sized business market, announced today the acquisition of the material assets of Fox Communications. Under the terms of the transaction, Y3K's subsidiary, Ecuity Holdings, Inc., has acquired the material assets of the sixteen year old Washington based telecommunications company through a cash, promissory note and stock transaction valued at approximately $4.8 million. This transaction completes the final phase of the Joint Operating Agreement between Y3K and Fox Communications.
The assets acquired by Y3K include the competitive local exchange carrier (CLEC) consisting of a customer base of 18,000 residential and business customers, conferencing and ISP operations, next generation voice services, fully functioning customer service and billing capabilities and the employee base and Fox management. Additionally, the transaction included the recently upgraded Network Operation Center (NOC) that allows for the significant expansion of unified end-to-end communication solutions through the addition of voice over IP (VoIP). In addition to the growth of the unified products and services, the new NOC increases efficiencies, reduces costs and has a positive impact on operating revenue. Fox Communications generated $16 million in revenue in 2003. The historical revenues of Fox Communications will not be reflected in Y3K's financial statements.
This acquisition allows Y3K to emerge as one of the few companies nationwide to provide complete voice and secure communications and technologies to small and medium sized businesses. In order to reflect the robust product line of unified communications and next generation voice services now offered, the new wholly owned telecommunications subsidiary is called Ecuity Holdings, Inc. Frank Maros, of Fox Communications, moved from sales and marketing to President of Ecuity Holdings, Inc. Maros will oversee all operations within this subsidiary. Fox Communications' residential and business customers will be transitioned and will not experience a change in their current level of service. Fox's customers can expect to benefit from an increased level of services and expanded product offerings.
"The management of Fox and its talented team of people have built a successful and innovative telecommunications company with a strong and loyal customer base. We are enthusiastic about incorporating these assets into Y3K and we expect that over the next 90 days we will successfully complete this integration," stated King Cole, President of Y3K. "This new subsidiary of Y3K allows us to now economically deliver to the small and medium business market complete end-to-end communication solutions including secure next generation voice services, instant messaging, data transfer, long distance plans, conference calling and internet services coupled with cutting edge technology."
"Our vision is to be the leading provider of complete communication solutions for small to medium sized businesses. The entrepreneurial spirit that has driven Fox and allowed us to build a successful company will continue to grow and thrive at Y3K," stated Frank Maros, President of Ecuity Holdings, Inc.
With the transaction complete, Y3K's first quarter plans include the continued sale and operation of telecommunication services, the continued integration and national marketing of end-to-end unified communication services, the marketing of the complete product and service set to the current customer base of 18,000 and the launch of voice over IP.
For a complete list of products and services, visit www.ythk.com.
About Y3K Secure Enterprise Software (www.ythk.com)
Located in Seattle, Washington, Y3K has emerged as one of the few providers of complete end-to-end unified communication technologies for the small to medium business market. Y3K economically delivers secure next generation voice services, instant messaging, data transfer, long distance plans, conference calling, internet services and enterprise software packages designed to meet the communication needs of today's business world.
Through the integration of web based telecommunications and cutting edge software technology, Y3K's unified communication solutions break down distance, time and media barriers to allow people to communicate anywhere, anytime and across multiple mediums.
Perfectly suited for today's geographically diverse workforce, Y3K's unified communication solutions and software technologies allow businesses to work smart, without barriers.
This report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, and the impact of competitive services and pricing and general economic risks and uncertainties.
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