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Aether Systems Joins Hicks, Muse, Tate & Furst and PSINet inEquity Investment in Metrocall
Wireless Application Service Provider to Invest More Than $17 Million for
Major Stake in Metrocall's Wireless Data and Messaging Future
ALEXANDRIA, Va., Feb. 7 /PRNewswire/ -- Metrocall, Inc. (Nasdaq: MCLL) today announced that Aether Systems, Inc. (Nasdaq: AETH), the leading wireless application service provider (ASP), will invest approximately $17 million in Metrocall as part of the three separate equity investments announced last week. Aether Systems is the strategic technology partner that Metrocall referenced in its announcement (February 3, 2000) of a $51 million equity infusion from Metrocall's new equity partners, Hicks, Muse, Tate & Furst and PSINet Inc. (Nasdaq: PSIX). Aether Systems will acquire approximately 7.8 million shares of Metrocall Common Stock for approximately $17 million and will own approximately 9.9% of the company upon completion of this investment and full conversion of the Series C convertible Preferred Stock owned by AT&T Wireless. Aether Systems will have the right to appoint a representative to Metrocall's board of directors.
Also, Aether Systems will join with Metrocall, PSINet, and Hicks Muse, and others as a participant in a new joint venture enterprise. Details on this new joint venture will be announced at a later date.
"We couldn't be more pleased to have the world's leading wireless application service provider, with unparalleled engineering capabilities, recognize the qualities and potential of Metrocall's overall business capability and the Reflex 25 protocol for providing Short Messaging Service (SMS) and wireless data applications," stated William L. Collins, III, president & CEO of Metrocall.
David Oros, chairman and CEO of Aether Systems said: "We are pleased to join PSINet and Hicks Muse to partner with Metrocall and its strong management team. This investment provides an entree to Metrocall's existing customer base of six million-plus subscribers. Our leading technologies combined with Metrocall's one-way paging and Reflex 25 protocol will enable us to offer a more complete wireless data solution to the small office/home office customer."
Aether Systems, Inc., is the leading wireless data applications service provider that enables real-time data communications over a full range of wireless devices and networks. Using its engineering expertise, its unique Aether Intelligent Messaging (AIM) software platform and its customer service and network operations center, Aether Systems uses a "one-stop shopping" approach to enterprise customers by offering turnkey wireless data solutions with software and applications that are device and network agnostic. Aether's initial focus has been on developing and supporting wireless data applications for leaders in the financial services industry with customers such as Charles Schwab, National Discount Brokers, Morgan Stanley Dean Witter and Bear Sterns. Aether also is a joint principal owner along with 3Com Corp. of OmniSky, Inc., a wireless Internet service provider based in Palo Alto, California.
Metrocall, headquartered in Alexandria, VA, is one of the leading wireless data and messaging companies in the United States, serving more than six million (pro forma with previously announced NationPage acquisition) subscribers. In addition, Metrocall markets digital PCS phones and offers two-way messaging via a nationwide wireless data network. For more information on Metrocall please visit www.metrocall.com or AOL Keyword: Metrocall.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The statements contained in this release which are not historical facts, such as those concerning future financial performance and growth, are forward-looking statements that are subject to risks and uncertainties, including factors affecting the Company's business generally, as well as those identified in Metrocall's Annual Report on Form 10-K, and in Metrocall's periodic reports under the Securities and Exchange Act of 1934, and could differ materially from those set forth in the forward-looking statements.
SOURCE Metrocall, Inc.
CO: Metrocall, Inc.; Aether Systems, Inc.; Hicks, Muse, Tate & Furst; PSINet Inc.
ST: Virginia
IN: MLM TLS
SU:
02/07/2000 00:01 EST prnewswire.com |
