SEATTLE-Cellular Technical Services Co. Inc. said negotiations and the letter of intent signed in March to combine with U.S. Wireless Corp. were terminated because the parties could not agree on certain conditions of the proposed merger, including the requisite financing.
The called-off stock transaction would have given U.S. Wireless the option to either acquire or merge with CTS, as well as a controlling position on the board of directors. Each company would have owned 50 percent of the proposed combined company.
“CTS is continuing its internal restructuring to enable it to better match its costs and expenses with its projected revenues,” said Stephen Katz, chairman and chief executive officer of CTS.
“We are also moving forward to explore other business opportunities that may be available, including possible alternative business arrangements with U.S. Wireless,” Katz added.
U.S. Wireless offers enhanced 911 solutions, and CTS provides fraud-prevention solutions to the wireless industry. The companies wanted to take advantage of their similar technologies and provide a faster time to market for a combined wireless fraud-location product.
The letter of intent called for the companies to seek about $15 million in new financing to promote the combined product offering.