Florida-based O2 Secure Wireless, which designs, engineers, deploys and maintains wireless broadband systems across the United States, has announced that it has signed a Memorandum of Understanding (MoU) with an as-yet unidentified pan-Central American cableco, with a view to assuming a controlling stake in the firm. The MoU allows O2 Secure Wireless a 60-day window within which to evaluate and complete the due diligence process. O2 notes that its immediate goal is to expand its current range of services, which will include the immediate provisioning of internet, voice telephony and IPTV through an ‘already well-established provider of these services’. Branded mobile services will also be offered to complete the package. A final agreement is expected to be signed in December 2012 following a legal review.
Val Kazia, CEO of O2 Secure Wireless, commented: ‘We welcome this opportunity to collaborate with this company and thereby expand our product offering and geographic coverage in the promising international market for cable, internet, and telephone service, by working with a company that is fully operational. This company not only has an established reputation and strong existing consumer base, it has forward-thinking management and up-to-date core infrastructure services. We are confident that the new arrangement will bring significant benefits for both parties and ultimately establish a solid presence in the territory for us. We are not releasing the name of the company that we are in negotiations with in order to respect non-disclosure agreements related to the due diligence process. Upon completion of the review, full disclosure will be provided by the appropriate means to close on the transaction’.
In other news, 02 Secure Wireless has confirmed that it has agreed to the terms of a USD50 million financing facility from AGS Capital Group, subject to such financing being registered with the Securities and Exchange Commission (SEC) as well as other conditions. The Reserve Equity Financing is a long term strategic partnership that places O2 Secure Wireless in the determining position of how and when equity is raised, minimising any potential compromise to the company’s capital structure.