announces its acquisition of Callserve Communications, a UK-based telecommunications service provider. The deal is expected to be sealed by the 30th January 2008, for a maximum consideration of £2.9 million. The acquisition of Callserve compliments and expands on Vyke's existing operational base in the UK and will enable greater penetration into the UK market. Callserve also has existing African and Middle Eastern distribution networks, where customers will benefit from conversion to the Vyke product suite.
Callserve, founded in 1999, is a profitable and well managed company that has built up a strong reputation in the industry. Total gross revenues for the calendar year ending 31st December 2007 were £8.5 million and Net liabilities at completion are estimated at around £1m. The consideration will be satisfied by the issue and allotment of up to 4,004,602 ordinary shares in Vyke, with lock in periods of up to one year for the majority of the shares.
The acquisition also provides the opportunity to channel Callserve's existing customer base into the Vyke product suite and I am confident that this will help to drive Vyke's continued long term growth."