Software designer and developer Cyber Digital Inc. (OTCBB: CYBD) announced that it had acquired two “profitable” telephone companies last week, adding former eLEC Communications Corp subsidiaries New Rochelle Telephone Corp and Telecarrier Services Inc. to Cyber Digital’s services.According to the release, Cyber Digital acquired these two companies on “cashless basis” by assuming $1.3 million of debt from both companies in addition to receiving more than 800,000 restricted shares of common eLEC Corp stock. Despite the acquisition, services for both companies have continued as normal; these companies will “operate as separate business units of Cyber Digital and have minimal or no integration issues” and their current employees will “continue to provide services … without any disruption.”
Both the Federal Communications Commission and the appropriate state Public Utility Commission now license Cyber Digital to provide services in the states of New York, New Jersey, Pennsylvania, Ohio, Massachusetts and Florida. Cyber Digital claims that these two acquisitions will create “a vast opportunity” to build the company’s cost-effective alternative ‘Last Mile” voice and broadband networks in those six states.
J.C. Chatpar, the company’s CEO and president, called the acquisition a “major milestone.”
“We received financing from a large institutional fund, acquired two telephone companies and obtained licenses to market in six major states,” Chatpar said. “Our overall strategy is to grow through acquisitions, which provides for large-scale expansion and controlled deployment of our networks with minimal cost of customer acquisition.
“In line with this strategy, we are now ready to move forward with additional expansion through acquisitions,” Chatpar added.
