All Communications Corp. Friday signed a nonbinding letter of intent to acquire ViewTech Inc. in a stock deal to bring clients new DSL technologies.
In the merger, View Tech will issue approximately 2.9 shares of its stock for each share of All Communications stock such that, upon closing of the merger, All Communications stockholders will own approximately 70 percent of the total outstanding shares of the surviving company.
All Communications President and CEO, Richard Reiss, will serve in the same capacity for the combined company.
Following the merger, the combined company will change its name to Wire One Technologies Inc., and is expected to trade
on the Nasdaq National Market.
“The merger of the two companies will result in a larger blue-chip customer base and expanded geographic presence while combining the experienced sales and technical personnel of the two companies.” said Reiss. “Mr. Reiss further stated that: “the numerous operating efficiencies, as well as the aggressive overhead reduction effort currently underway at View Tech, will position the combined company for profitable growth in 2000 and beyond.”
Fruits of the new merger will include a new subscriber service featuring digital subscriber line (DSL) based access for Internet Protocol (IP)-videoconferencing, video streaming and other applications requiring a high level of QOS (quality of service).
The combined company will have one of the largest installed bases of video communications systems using both the H.320 switched digital network (ISDN) standard and the more recent H.323 IP standard.
All Communications is currently in discussions with industry leaders for the development of a new network operations center (NOC) and intends to leverage the combined company’s national installed base of commercial, government, education and medical customers in the rollout of this new IP, broadband subscriber service.
