MADRID, Spain, Dec. 3 /PRNewswire-FirstCall/ -- ITS Networks, Inc. (OTC Bulletin Board: ITSN - News) announces signing an agreement to acquire Teleconnect Communicaciones S.A., a Spain-based telecom operator marketing prepaid services. The transaction involves an exchange of 3,000,000 shares of ITS Networks Common Stock with the assumption of approximately $2,200,000 of Teleconnect Communicaciones outstanding debt. ITS Networks has raised over $2,500,000 from private investors specifically for this acquisition. ITS Networks management will lead the consolidation of Teleconnect Communicaciones seeking to minimize redundancies, implement new cost control procedures, and restructure the combined companies which should produce a significant increase in sales.
ITS Networks Inc.s President & CEO, Gustavo Gomez, stated, "The telecommunications industry is experiencing difficult financial times and transactions of this nature among players are common in the pursuit of achieving positive operating results in fiscal 2003. The complementary nature of our businesses make this acquisition a financially rewarding opportunity for both companies. Teleconnect Communicaciones closed 2001 with over $12,000,000 in sales of annual prepaid services. ITS has revenues of over $2,000,000 annually primarily due to post-paid services. The planned restructuring with Teleconnect will allow ITS to become much more competitive in the local Spain market."
ABOUT ITS NETWORKS:
ITS Networks, Inc. (OTC Bulletin Board: ITSN - News) is one of a select few Spain-based corporations to be quoted on a U.S. stock exchange. ITS Networks, Inc., through its wholly-owned subsidiary I.T.S. Europe S.L. a Spanish telecommunications Company, is pioneering specific telecom services into carefully selected segments of the Telecommunications industry in Spain. A niche-player, ITS has defined the services needed in the largest, fastest growing, and most underserved markets in Spain and is positioned to assume a leadership role in those markets. http://www.itseurope.es