AcquisitionFebruary 13, 2012
FOR IMMEDIATE RELEASE
13 February 2012
Acquisition of Dialect Technologies Inc enhances US presence
Globo plc (“Globo”; “the Group” LSE-AIM: GBO; www.globoplc.com), the international IT, S.a.a.S and mobile solutions group, announces that it has acquired Dialect Technologies Inc (“Dialect”, www.godialect.com), a New York-based specialist provider of IP telecom technologies and services to international telecom operators and businesses in the US.
The cash consideration for the acquisition is $800,000 payable in instalments. The first instalment of $273, 000 was paid on completion, $227, 000 to be paid within one year and $300, 000 payable upon successfully achieving certain targets in 2014.
Dialect has developed proprietary VoIP and mobile telephony technologies which, when integrated into Globo’s products, will strengthen the Group’s offering. The acquisition of Dialect also establishes Globo in the strategically important US market.
Dialect’s business is focused on two main areas:
· Technologies and services for businesses (SME, SOHO) where Dialect is achieving rapid growth in its customer base driven by its Hosted PBX and dBox PBX products.
· Technologies and services for carriers where Dialect currently has contracts with more than 20 operators including MCI / Verizon, KPN, iBasis, Primus and Fusion, as well as being an active member of New York Telecom Exchange (NYTEX), all of which are being served through Dialect’s carrier grade interconnected data centres in Dallas TX, Washington DC and Seattle WA.
Dialect’s principal products are:
· dBox PBX is an open, reliable, extensible and cost effective IP telephony platform, incorporating a PBX system, unified messaging, contact centre and mobility, to provide the full range of features, from voicemail to call forwarding, to enterprises ranging from 5 to 10,000 users
· Hosted PBX is based on dBox PBX and delivers PBX functionality as a service over the Internet. It is feature-rich compared to most premise-based systems and is easily scalable to allow for future growth. It eliminates the need to buy and install equipment, which is housed by Dialect in secure data centres, and to manage or pay for on-site hardware maintenance. Features include allowing a single number to be presented for the whole enterprise across all geographic locations, and allowing a single extension to ring in multiple locations.
· Fixed Mobile Convergence platform (“FMC“) enables enterprises to integrate cellular and private network services. It allows users to be reached with single calls to single numbers regardless of location. Features include “presence capability” to provide the called party’s “availability” status, as well as allowing users to return calls, access voicemail, and perform other tasks while on the move. FMC enables enterprises to achieve significant cost savings, particularly for international calls. As all calls are passed through the company’s PBX, it can also record phone calls through a mobile device, a feature of value in certain regulated environments such as financial services.
Currently, Dialect’s FMC supports Blackberry and Android phone systems and development for iPhone and Windows Phone is underway.
Dialect has won awards such as the 2010 and 2011 Inc 500 Award, the 2010 and 2011 Lead411 Technology 500 Award and the 2011 Hottest New York City Companies Award.
Globo’s management believes that the acquisition of Dialect will result in significant benefits and growth opportunities for the Group.
· Dialect’s IPR and know how, especially in FMC, will strengthen the Globo’s enterprise offering after integration into GO!Enterprise Server.
· Dialect is a profitable business with the potential to accelerate growth following investment by the Group.
· Dialect establishes a channel to the US market for GO!Enterprise Server as well as providing a customer support base.
· There will be cross-selling and up-selling opportunities for dBox PBX and Hosted PBX which can be offered to existing customers and carriers through Profitel, the telecom and S.a.a.S arm of the Group.
During the year ended 31 December 2011, Dialect generated unaudited revenues of $2.1 million and profits before tax of approximately $60,000. Dialect’s Management will continue to be responsible for operations and product development with growth plans for the business including the expansion of its sales and marketing team for Globo’s mobile product and service offerings within the US.
Costis Papadimitrakopoulos, CEO of Globo commented:
“We are very excited by the acquisition of Dialect. It represents a significant strategic step for Globo as it strengthens our international mobile product offering and provides a platform for our expansion into the US enterprise market.
We will be able to generate new revenues quickly by marketing dBox PBX and Hosted PBX through our existing channels. Also, the integration of FMC into GO!Enterprise Server will open up new markets by enabling Globo to offer solutions not currently available.
Full integration of Dialect will strengthen Globo’s technology and market position, significantly enhancing the Group’s prospects for profitable growth in the international mobile arena.”
Costis Papadimitrakopoulos, CEO
Dimitris Gryparis, Finance Director
Daniel Stewart & Company Plc (Nomad & Broker)
Noelle Greenaway (Corporate Finance)
GLOBO plc was admitted to AIM in December 2007. Founded in 1997, Globo has established itself as a leader in the international mobile and ICT market, providing a wide range of mobile, e-business and telecom software products and related services to private and government organisations and to the mobile sector. The Group has an international presence, currently with offices and subsidiaries in 8 countries, and further expansion of its international footprint is planned, in line with management’s mobile communications strategy. For further information please go to www.globoplc.com.