US communications giants in US$4m EMEA deal

US-based systems integrator WFI has announced plans to sell off its European, Middle East and African (EMEA) operations as part of an estimated US$4 million deal with LCC International.

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By  Ronan Shields Published  March 11, 2007

US-based systems integrator WFI has announced plans to sell off its European, Middle East and African (EMEA) operations as part of an estimated US$4 million deal with LCC International. The cash-for-stock transaction is set for completion by the end of Q1 2007; with WFI claiming the deal will allow it to focus on the ‘growing opportunities’ in the US market. “The sale of WFI’s EMEA business is consistent with our strategy of focusing our business even more directly on the growing domestic opportunities in our industry,” claimed Eric DeMarco, president and CEO of WFI. “LCC has an established critical mass in Europe that can more effectively support a profitable operation in this region. This business has made notable achievements, including significantly diversifying both its geographic reach and customer base,” he added. DeMarco also commented on how the move would aid WFI’s entry into the advanced wireless services (AWS) market. “By divesting from this business WFI can dedicate even more of its resources to the pursuit of opportunities arising from the AWS spectrum auction.” The company also claimed it would use the US$4 million cash injection to shore up its credit accounts. “Additionally, this transaction will improve WFI’s free cash flow and overall liquidity as we pay down debt, another aspect of our transition strategy.” LCC International claims the move will allow it to expand its operations in the Middle East, as well as Europe, where it claimed to have particular interest in the emerging markets of the region. “With the acquisition of WFI’s EMEA business we can increase the leverage of our existing operations to accelerate profitable growth in the region," said Dean Douglas, president and CEO of LCC. "We now have the scale and presence to provide our customers with a seamless integration as we continue to capitalise on the exciting opportunities we see in the EMEA,” said Douglas. WFI EMEA has been present in the region for over eight years with its customer base boasting a raft of high profile industry names such as Ericsson, Nokia and Vodafone. The company has reported exponential rates of growth over the past four years with its EMEA operations generating revenues in excess of US$17 million in 2006 alone. The company is present in over 28 markets throughout the EMEA region with its Middle East and African headquarters situated in Turkey. All 350 WFI EMEA staff will become LCC employees as soon as the deal is completed.

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