has completed a Letter of Intent to acquire 100% of an additional VoIP services company providing services to small and medium enterprises in the United States. Definitive agreements will be completed by end of April and following successful completion of the necessary due diligence the transaction is expected to close in the Flint's last financial quarter on June 30, 2011.
The company being acquired is profitable with annual revenues in excess of $1.5 million. When consolidated with the other pending acquisitions, operating costs will be reduced due to shared common services and network cost reductions that are expected to improve the acquired company's net income by about a third.
Fierce VoIP magazine quotes the recent Federal Communications Commission study showing VoIP usage by businesses and consumers increased 21 percent between 2009 and 2010. The FCC's Local Telephone Competition report indicates that IP communications is on the rise with 21 million end-users taking advantage of VoIP subscriptions from cable, traditional telcos or VoIP providers. The report noted that there were 162 million wireline retail local telephone service connections as of the end of 2008. Of that figure, 21 million were VoIP subscribers. With the FCC's plans for the all-IP network, these numbers may be shifting more in the coming years.