Hello Direct Inc., a developer and
direct marketer of desktop telephone productivity tools, said it will acquire
privately held PhoneZone.com, which publishes a Web
buyers guide covering telecommunications and networking products and services.
Financial terms of the agreement were not disclosed. PhoneZone.com, founded in
1996, is a source of comparative research, analysis, and purchase information
on telecom and networking solutions for small and medium-size companies.
Alec Glover, Hello Direct’s chief executive officer, said that more aggressive
Internet channel development is one of the key elements in the company’s
growth strategy.
“The Internet is our most exciting and fastest growing channel, already
approaching 10 percent of our total quarterly revenue and growing at more than a
doubling rate year on year in 1998,” he said. “This acquisition positions us to
dramatically accelerate our electronic
commerce initiative. . .”
For the nine months ended September 30, 1998, Hello Direct reported net sales
of $51.5 million. PhoneZone.com’s revenues for 1998 were approximately $1.2
million.
“PhoneZone.com provides small and home office buyers with an easy way to
locate, compare and buy telecom products and services, from low cost dial tone
to emerging technologies like Internet telephony and next generation PBX’s,”
said Brian McConnell, PhoneZone.com’s president and founder. “With the
marketing support of an industry leader such as Hello Direct, we will be able
to turn one of the best kept secrets on the Web into a mainstream
marketplace.”
Hello Direct develops and markets telephone productivity tools including
headsets, teleconferencing, wireless and related desktop products.
