Vancouver, BC, CANADA – August 24, 2010 – Voice Mobility International, Inc. (VMY.H, VMII and FWB: VMY) (“Voice Mobility” or the “Company”), a Vancouver-based developer and provider of carrier and enterprise messaging solutions, today announced the execution of a Letter of Intent with Tagline Communications Inc. (“TAGLINE”) to acquire all of the assets of TAGLINE in a cash and equity transaction. The companies have agreed to have a definitive purchase agreement in place by August 31, 2010 and to close the transaction no later than September 18, 2010.
Jay Hutton, Voice Mobility CEO commented, “This acquisition is our first step in a planned series of acquisitions of profitable digital services companies offering a small office / home office subscription or monthly model to users encompassing features such as one number dialing, mobile communications, fax to email, cloud based address book, encryption and document sharing .”
TAGLINE is a digital communications services provider specializing in unified communications services for the small and medium sized business marketplace. TAGLINE is profitable and generates monthly subscriber revenues (average lifespan of a client is 4 years) of about $60.00 per subscriber per month from its very stable customer base (less than 4% churn year).
“The customers of TAGLINE have been enjoying the benefits of a basic unified communications product offering for more than 10 years. Our plan is to acquire the company, and begin to offer next generation mobi-digital services to that customer base. Since TAGLINE is already profitable our strategy should result in an improvement in the profitability of TAGLINE and, by extension, Voice Mobility.” Mr. Hutton added.
Closing of the acquisition is subject to various closing conditions, including approval of the NEX.
About Voice Mobility
Voice Mobility develops and markets its unified communications product line to enterprise, campus and hosted customers. Our product line includes highly scalable Voicemail, Unified Communication, Fax Service, Interactive Voice Response, and Auto-Attendant applications, as well as unique features like Emergency Event Notification, Mobile Client functionality, Presence, Speech applications and Desktop integration with industry leading software providers. Migration options are available allowing the transfer of messages and data from legacy OCTel® messaging servers. For more information, visit www.voicemobility.com.
About Tagline; Tagline is a privately held Inc. Tagline is designed to simplify your life enabling productivity through having the simplicity of all your calls, faxes, voicemails and conference calls delivered through the convenience of one solution. One day soon all of us will be using one solution to manage our communication needs. For more information visit: www.myvirtual-office.com/
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Notice Regarding Forward Looking Statements
This press release contains projections and forward-looking statements. Statements in this press release, which are not purely historical, are forward-looking statements and can include, without limitation, statements based on current expectations involving a number of risks and uncertainties and which are not guarantees of future performance of the Company such as the statements that the Company will acquire all Tagline, that the Company will complete other acquisitions of profitable companies, that the offering of the Company’s products to Tagline’s subscribers will increase Tagline’s and the Company’s profit.
There are numerous risks and uncertainties that could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information, including (i) the inability to close the acquisition of Tagline for any reason; (ii) adverse market conditions; (iii) the lack of adoption of the Company’s products by Tagline’s subscribers; and (iv) the inability to identify and complete acquisitions of other profitable companies. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2009, its quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.