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Mergers and Acquistions News

Categories: Telecoms, Software

July 12th 2010, 19:22PM

Mobile voice over internet protocol provider Vyke Communications has entered into a joint venture agreement with Bonjour Europe Ltd, a subsidiary of BLS Telecom Holdings.

Targeting $100 million (£66 million) of first year revenues and an EBITDA in excess of $1.5 million (£100 million), Bonjour will be rewarded on the basis of revenue performance and will be issued with Vyke shares.

Bonjour, a telecoms provider which operates in the US and Africa, will now attempt to expand its operation to Europe through the joint venture.

The deal was welcomed by Vyke and hailed as a "key development" in its history, according to non-executive chairman Jorgen Peter Rasmussen.

"Bonjour, through its affiliates in the BLS TEL Holdings LLC group, is an established telecoms provider and the management team has considerable experience in running telecoms companies both in the US and worldwide. The board of Vyke believes that this transaction will enable Vyke to accelerate its growth and development plans," he said.

Analyst Mike Jeremy highlighted the importance of the move.

"The level of participation, stated revenue and EBITDA targets and prospect of board-level participation by BLS suggests that this may prove to be Vyke's most significant participation to date," he said.

Shares in Vyke have gained 12 per cent since the deal was announced, according to Reuters.ADNFCR-1833-ID-19884953-ADNFCR

 

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