Consolidation in the wireless distribution arena is under way with two acquisitions announced this week.
Wireless Channels, parent of Advantage Wireless, acquired American Connections, a wholesale distributor of wireless services and equipment. Advantage Wireless is also a distributor.
Wireless Channels said the acquisition would boost its annual revenues to $150 million and double its dealer locations.
“Changes is technology, pressure on margins and demand for high-quality dealer support create an opportunity for consolidation in the wireless distribution business,” said Advantage Wireless Chairman and Chief Executive Officer Ben Joseph.
Wireless Channels’ footprint now includes 40 markets and a total of 2,500 dealer locations.
In other distribution news, Teleplus EnterprisesInc. of Montreal said it signed a letter of intent to acquire all of the assets, except the phone card business assets, of Mr. Prepaid.
The transaction calls for TelePlus to pay a combination of cash and stock valued at approximately $3 million to the principals of Mr. Prepaid. TelePlus expects to close the transaction within 45 days.
Mr. Prepaid currently supplies a variety of wireless phones, related accessories and wireless and long-distance vouchers to more than 700 retail locations on the East Coast and recently launched its own mobile virtual network program under the UR MOBILE brand name.
“We are delighted to have signed this LOI with Mr. Prepaid” said TelePlus CEO Marius Silvasan. “The addition of Mr. Prepaid’s business to our own, once the transaction closes, is strategic in nature as it not only significantly increases our revenues and positively impacts our earnings but provides us with a platform to jump-start the deployment of our MVNO program. Furthermore it provides us with a solid foundation to our company’s future growth in the United States.”
