Mobile VoIP provider Vyke Communications has agreed to buy UK telecoms service provider Callserve Communications Limited for up to 2.9 mln stg - below the 3.5 mln stg projected price indicated last year.
Vyke said in November 2007 that it had entered into a letter of intent to buy an unnamed UK-based retail Voice over Internet Protocol (VoIP) service provider for 3.5 mln stg.
The deal is set to complete on Jan 30 and the acquisition will provide Vyke with additional wholesale VoIP network assets in the UK. Callserve also has existing African and Middle Eastern distribution networks.
Callserve's total revenues in the year to Dec 31 2007 were 8.5 mln stg, with net liabilities at completion of around 1 mln stg.
The acquisition will be funded by the issue and allotment of up to 4,004,602 shares in Vyke, with lock in periods of up to one year for the majority of the shares.