Transamerica to Finance Leasing Program for Osicom Customers; Osicom and Partners Establish Osicom Finance, LLC,to Finance Purchases by Telcos and Other Customers
August 5, 1998 08:34 AM
SANTA MONICA, Calif. and SAN FRANCISCO--(BUSINESS WIRE)--Aug. 5, 1998--Osicom Technologies, Inc. FIBRD and Transamerica Distribution Finance, a subsidiary of Transamerica Corporation, the NYSE-listed financial services firm with over $50 billion in assets TA , today announced an agreement to provide Osicom customers lease financing for purchases of the company's transmission and network access products. Leases will be offered by the newly-formed Osicom Finance, LLC ("OsiFin"), a joint venture between Osicom and Dovertower Capital, LLC, the New York-based merchant investment banking firm, with financing provided by Transamerica.
According to Ted Brandt, Managing Director for Vendor Financial Services at Transamerica Distribution Finance, "Large carrier customers have seen dramatic changes in their business over the last 18 months, accelerated by the explosion of the Internet and the Telecommunications Act of 1996. This has fundamentally changed the way Telcos set prices, recover investments, measure operations and even compensate executives. The result has been an increased dependence on leasing, with its benefits for asset ratios and cash flow, as a means of acquiring equipment. Osicom came to us because they wanted an aggressive, flexible partner to provide the financing component of their sales package. With Transamerica's years of domestic and international leasing experience, we believe we can tailor attractive programs to the carriers, channel partners and corporations which make up Osicom's current and prospective customer base."
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