KS TELECOM IS GONE!
Pay Pop Inc. Acquires Delecom Communications and Key Systems
Business Wire - October 16, 1998 13:16
ALDERGROVE, British Columbia--(BUSINESS WIRE)--Oct. 16, 1998--
Delecom Communications Signs Deal With Property Management Group
Pay Pop Inc. (OTC BB:PAYP) is pleased to announce that it has finalized and completed the 100% acquisition of Delecom Communications of Aldergrove.
Delecom Communications is a telecommunications company positioned to take advantage of the current communications evolution that is taking place in North America and the world. This includes internet Protocol (IP) based technologies which allow IP Telephony Service Providers (ITSP) to build faster, less expensive integrated systems that replace the legacy telephone networks. Delecom provides traditional services such as business telephone lines (Centrex Services) and leverages this to provide new services such as Voice over IP (VOIP) and Fax over IP (FOIP).
Delecom has entered into an agreement with one of the largest property management companies in North America, by which Delecom will install its switching equipment into several hundred buildings. The management group will offer a one billing system for all their tenants communications (telephone, fax, internet, cellular, data network). Furthermore, the property management group will be able to offer their tenants bundled services at a greatly reduced price for their administration communication services throughout their properties. It is anticipated that each of these locations will average over 2,000 lines. Delecom has already installed their equipment in four locations.
Pay Pop Inc. is at an advanced stage of negotiations to acquire a company with current annual long distance sales exceeding US$12,000,000. Delecom, through its technology, has positioned itself to greatly benefit in the long distance service sector. Delecom has successfully Beta tested its long distance network between Vancouver and Toronto and will release it to its customers within 30 days. Delecom is currently installing switching equipment in Calgary and New York with expectations of further expansions in the United States.
Pay Pop Inc. has entered into a letter of intent to purchase all the outstanding shares of Key Systems U.S. of West Palm Beach. Key Systems is a company that manufactures PC based PBX's and Lodging billing systems and has annual revenues of over US$7,500,000. Pay Pop views this acquisition as a great complement to Delecom in technology, equipment and revenues. With the integration of Key Systems U.S. Delecom will benefit from reduced hardware costs as well as product availability, thus strengthening the purchasing power overseas with Key Systems U.S. Pay Pop has agreed to pay US$2,500,000 and retain most of the current management on a scaled performance basis.
Pay Pop Inc. is also pleased to report that it is in final negotiations with a New York Merchant Bank to close a US$8,000,000 financing. The proceeds will be used to complete the acquisitions and cover equipment and capital requirements over the next two years.
For further information, call Delecom's Public Relations Department at 604/607-7500, or email: info@delecom.net.
Derek Bustin, President
CONTACT: Delecom Communications
Derek Bustin, President
604/607-7500
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%PAY-POP PAYP %FLORIDA %COMED %TELECOMMUNICATIONS % |
