**Editor's Note: Please click here for a recap of the biggest M&A in Q4 2012 in the service-provider and BSS/OSS spaces.**
Elephant Talk Communications, an international provider of mobile networking software and services based in The Netherlands, said this week it's entering the U.S. telecommunications market for the first time with the acquisition of Oklahoma City-based Telnicity, an MVNE/MVNO.
Elephant Talk will buy all of Telnicity's assets for $1 million, assuming closing conditions, including regulatory approval, are met. Those assets include customer contracts, carrier agreements, and access to telSPACE and mCASH, Telnicity's propriety turnkey back-office infrastructure and billing systems. Telnicity's six full-time equivalent employees will remain in their current positions, Elephant Talk said. Look for the deal to close by March 8.
"We will work on a seamless and efficient global platform for MNOs, MVNEs, and MVNOs to operate by taking advantage of the technologies of both companies," said Steven van der Velden, chairman and CEO of Elephant Talk Communications. "Telnicity's relationships with several North American-based telecommunications companies provide a head start for the launch of Elephant Talk's services into the U.S. mobile telecommunication market. In addition, Telnicity's existing customer base will be able to leverage Elephant Talk's technology and telecommunications relationships to offer more complete international calling and roaming packages."
"Telnicity is a one-stop shop for outsourced solutions for any company in any industry to become a reseller of mobile communication services," said Dane Gasio, Founder and Chief Executive Officer of Telnicity. "Joining forces with Elephant Talk will allow the combined company to bring an expanded product offering to the U.S. market to be driven by a strong U.S. based management team with substantial in-market sales, marketing, and technology development experience. Elephant Talk will give Telnicity the depth and breadth of product offerings that allow it to be more competitive and attractive to larger U.S. companies."
Dane Gasio, founder and CEO of Telnicity, will become president of Elephant Talk North America. In this capacity, he will work closely with Elephant Talk's global mobile telecommunications operations to build, further integrate and maximize the value of this global telecommunications company.
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