0T ****** RSL to buy Motorola Europe cellular unit
NEW YORK, June 29 (Reuters) - RSL Communications Ltd. said Monday it had agreed to acquire Motorola Inc.'s (MOT -
news) Motorola Tel.co, one of the largest independent providers of cellular air time services and related products in Europe,
for $75 million in cash and the assumption of a working capital deficit of $25 million.
RSL said it will cross-sell its existing services through Motorola Tel.co's distribution channel. Motorola Tel.co, a unit of
Motorola's European Cellular Subscriber Group, operates in the UK, France, Germany and Belgium.
In 1997 Motorola Tel.co had revenues in excess of $300 million. It has a customer base of about 480,000, comprised
primarily of small and medium-sized businesses, and individuals affiliated with businesses.
''By acquiring a business with nearly half a million customers across Europe, RSL will now be able to provide bundled
fixed-line and mobile services to a significantly expanded customer base at very attractive rates,'' Itzhak Fisher, RSL president
and chief executive officer, said in a statement.
The acquisition is subject to receipt of various third party and work council approvals and is expected to be completed during
the third quarter. |
