MONTREAL, April 5 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or "the Company") (TSX-V: PR) is pleased to announce the closing of the acquisition of Majetel Inc., a Quebec-based company specializing in tower construction, maintenance and project management services for the Canadian wireless telecommunications industry. The purchase price for the acquisition is $3 million subject to a working capital adjustment. This purchase price includes an initial payment of $2 million at closing, $500,000 on February 28, 2011 and $500,000 on February 28, 2012. The acquisition will be financed through an additional $2 million term loan bank financing.
Majetel has been a leading service provider to the telecommunications industry for the last fifteen years. The company had revenues of approximately $10 million in 2009, mainly from its activities in Quebec, Ontario and New Brunswick, and has 45 experienced field employees. Management of Majetel will remain with the company to ensure a smooth transition.
Pierre Yves Methot, Chairman and CEO of Prestige Telecom, commented: "The timing of this acquisition is perfect for Prestige as it will significantly strengthen our tower construction and maintenance capabilities in Quebec, especially with new potential business opportunities presently arising from the new wireless entrants. We believe that the integration of Majetel into our fold will enable us to grow this area of our business much faster, as we continue to enhance and expand our service offering to our customers."
About Prestige Telecom Inc.
Prestige Telecom is a leading provider of network engineering, materials furnishing, installation and support services (commonly referred to as EF&I services) required to construct, operate and maintain wireline, wireless and cable television networks. Prestige assists telecommunications original equipment manufacturers and service providers to engineer, install and upgrade their infrastructures to support enhanced voice, high speed data and video services. Prestige Telecom also provides technical and aerial services to the Canadian communications and broadcast industries, including tower supply, engineering, site construction, and infrastructure and equipment maintenance.
In Canada, Prestige has over 950 professional and technical personnel operating from seventeen (17) service locations in nine (9) provinces. Prestige's head office is located in Baie d'Urfé (Montreal), Quebec.
This press release contains certain forward-looking statements with respect to the Company. Such forward-looking statements are dependent upon a certain number of factors and are subject to risks and uncertainties. Management does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information or future events, except when required by the regulatory authorities.
The TSX Venture Exchange accepts no responsibility for the adequacy or the accuracy of this press release.
SOURCE PRESTIGE TELECOM INC.
For further information: For further information: Maryanne Golden, Prestige Telecom Inc., Director - Corporate Affairs, (514) 457-4488 ext: 273, firstname.lastname@example.org