SmarTalkSM TeleServices, Inc. today announced that it has signed a definitive agreement to sell its operator services business to New Millennium Communications Corporation. SmarTalk had acquired the operator services center, located in Butler, PA, as part of the December 31, 1997 acquisition of Conquest Telecommunication Services Corp. SmarTalk has previously stated that the operator services center was not key to its core business and had classified it as a discontinued operation as of January 1st.
In exchange for the contracts and assets relating to the operator services (O+), long distance (1+) and enhanced call services businesses of ConQuest Operator Services Corp., SmarTalk will receive $18 million in a combination of cash and notes less assumed liabilities.
Weâre pleased with the terms of the call center sale, stated SmarTalk CFO, Andy Folck. This is a fair price for the facility and allows us to get the discontinued operations off our books.
The call center is a viable operation staffed by a group of outstanding employees it simply was not core to the SmarTalk plan. New Millennium is acquiring an important strategic asset that complements its business strategy, added SmarTalk CEO Erich Spangenberg. There will be ongoing synergies between SmarTalk and the new owners of the call center, and we look forward to working together with New Millennium.
Miami based New Millennium Communications Corporation, founded in 1997, designs, operates and manages low-cost, high-quality communications services for its partners and customers around the world. Its new ATM data-centric network architecture will provide traditional local, long distance and international telephone services as well as frame-relay services, voice/video/data-over-Internet, International Toll Free Services (ITFS), Universal International Free Phone Service (UIFPS) and various Operator Services.
The transaction between SmarTalk and New Millennium has created the optimum business relationship, stated New Millennium President and CEO Edward St. Croix. This acquisition enables New Millennium to integrate another key ingredient in our quest to become a full network service provider.
SmarTalk TeleServices, Inc. currently maintains distribution agreements with the U.S. Postal Service and leading mass merchandisers, consumer electronics retailers, supermarkets, hotels, home office superstores and convenience stores throughout North America and the U.K. The Company also creates promotional phone card programs for advertisers and corporate clients. Visit the SmarTalk website at [http://www.smartalk.com. ]