TelePlus Enterprises Acquire Liberty Assets

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TelePlus Enterprises announced that its wholly owned wireless subsidiary, TelePlus Wireless signed a definitive agreement to acquire certain assets of Liberty Wireless, which is part of the InPhonic Group. Under the terms of the Asset Purchase Agreement, TelePlus Wireless will acquire the customer base, trade names, trade marks, domain names, web sites, and other assets of Liberty Wireless for a purchase price of $1.9M, all in cash. $1.4M will be paid upon closing, less any adjustments per the Agreement, and the remaining $500K will be paid quarterly over 4 equal instalments commencing 90 days from the transaction closing date. Teleplus intends to finance the acquisition from cash-on-hand. The effective date of the Asset Purchase Agreement is December 31, 2005. Liberty is the 3rd largest Sprint wireless reseller on the CDMA network (“MVNO”) after Virgin Mobile and Qwest and is in the top 10 prepaid wireless providers in the US.

TelePlus also signed a MVNE (Mobile Virtual Network Enabler) Services Agreement with Mobile Technology Services, a wholly owned subsidiary of InPhonic, to support on-going back office logistics. Under the MVNE Services Agreement, InPhonic will continue to deliver the systems platform for procurement, activation, billing, and customer care, as well as self-service platforms based on web and speech recognition technology.