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August 7, 2006
DEDHAM, Mass. -- RNK Telecom, a leading provider of PSTN and Voice-over-IP (VoIP) telephony services, today announced that it has entered into an letter of intent to acquire iOnosphere, Inc., a South Carolina-based provider of VoIP products and services, and international long distance wholesale carrier. The transaction is expected to be finalized on or before August 31, 2006.
"We are excited to welcome iOnosphere as part of RNK, and look forward to working with their highly talented and experienced team," said Richard N. Koch, president and chief executive officer, RNK Telecom. "Its widely known that IP telephony is continuing to gain momentum in European and Asian markets, and earlier this summer, analyst firm IDC predicted that the number of residential U.S. VoIP subscribers will grow from 10.3 million in 2006 to 44 million in 2010. Clearly, this technology is bringing about a worldwide paradigm shift in the way people communicate; the acquisition of iOnosphere is the next step in our long-term strategy to ensure that RNK remains a worldwide telephony leader - in both PSTN and VoIP."
As an international wholesale carrier, iOnosphere terminates telecommunications traffic to over 200 destinations for a variety of customers, including Tier 1 U.S. and European carriers. Of particular note, is that the combined entity's annual revenue is expected to exceed $60 million.
This transaction is a significant milestone in RNK's strategy for continued global expansion. Already an award-winning international provider of both traditional and IP voice products and services, RNK maintains a strong domestic presence in the US. Upon integration into RNK's corporate umbrella, iOnosphere will not only double RNK's VoIP footprint, but will also extend its reach to Asia, Africa, the Middle East, South America and other international destinations.
"The acquisition of iOnosphere will benefit both companies' customers by making available an expanded worldwide calling network and support infrastructure, and will provide access to both organizations' combined expertise in residential, small business and private-label wholesale markets," said Joy Tessier, executive vice president, RNK Telecom.
"In addition, this deal will create tremendous growth opportunities for both iOnosphere and RNK employees, as we have no plans for staff reduction."
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