InPhonic to Sell Liberty Wireless; Vaya Signs Letter of Intent to Acquire InPhonic's MVNO, Liberty Wireless24 October 2005
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.
Source: Market Wire
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