National wireless Internet services provider GoAmerica Inc. Tuesday merged Wynd Communications Corp. into its
operations as a wholly owned subsidiary.
Wynd’s wireless instant messaging technology for people who are deaf or
hard of hearing adds a unique capability to GoAmerica’s
mobile services.
Aaron Dobrinsky, GoAmerica president and chief executive officer, said
there were three key reasons for the wireless service provider to make the
acquisition.
“First, Innovative technology that will expand our total capabilities,”
Dobrinsky said. “Second, strong customer franchises that are expected to
grow extremely rapidly and third, a strong management team that will help
to build our company.”
GoAmerica plans to incorporate Wynd’s new wireless instant messaging
technology into its Web portal. Wynd’s instant messaging platform enhances
both the user’s experience and virtual communication capabilities over any
wireless device anytime, anywhere.
Wynd owns a rapidly growing customer base of more than 4,500 subscribers.
Subscriber revenues for 1999 totaled $1.4 million with a gross margin of 52
percent. The firm achieved early success with distinctive services for a
largely under-served market.
According to the American Speech and Hearing
Association there are 42 million Americans with varying levels of
hearing and, or speech loss for whom cell phones and other
telecommunications are not well suited.
By combining forces with GoAmerica, Wynd is expected to continue to be a
leader in its market. With the added capabilities and resources provided by
GoAmerica, Wynd can now accelerate its marketing initiatives to
significantly expand its customer base.
Dobrinsky welcomed Dan Luis, Wynd’s chief executive to the GoAmerica
management team.
“Dan Luis brings to GoAmerica an expertise in wireless technologies and
specialized markets as well as a track record for growing Wynd
Communications,” Dobrinsky said. “Under his leadership, Wynd’s subscriber
base has increased nearly 400 percent since 1998, while gross margins
improved more than 100 percent. We look forward to his major contributions
to all of GoAmerica’s businesses.”
Dan Luis, Wynd president and chief executive officer, said the merger is a
solid deal for the firm on many different levels.
“Merging with GoAmerica is good for Wynd on many levels,” Luis said. “Their
commitment to retaining Wynd’s focus will enable our management to deliver
the kind of results that are possible in this market and reach Wynd’s full
potential. I look forward to both the opportunity and the challenge.”
At the heart of the transaction is GoAmerica’s issuance of 7 percent of its
common stock, or 3,974,552 restricted shares of common stock to Wynd’s
shareholders. The shares, when issued, will be subject to a registration
rights agreement.
The closing of the acquisition is subject to certain conditions, including
the consent of Wynd’s shareholders.
