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FTS to Acquire Profitable Pennsylvania-based Wireless Company
Date:
Topic Finance, Investment and Stocks
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FTS to Acquire Profitable Pennsylvania-based Wireless Company
Expects to Include New Company in Proposed Share Spin-Off
TAMPA, FL -/October 10, 2005 - Wi-Fi Technology News/-FTS Group, Inc. (OTC BB: FLIP), a publicly traded acquisition and development company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc., announced the signing of a binding letter of intent of acquire a profitable Pennsylvania-based Wireless Company in a cash and stock deal valued at $5.5 million.
FTS Group CEO Scott Gallagher commented, "We're pleased to have secured what is in my opinion, the most significant opportunity FTS has entered into. We have signed a binding letter of intent to acquire a privately held Wireless Company with an exciting future and a strong 20-year record of consistent profitable growth. Subject to receipt of audited financials, the target Company is expected to post audited 2004 cash-flow of approximately $691,427 on sales of around $4.2 million and 2005 un-audited cash-flow of approximately $1.282,357 on sales of $4.8 to $5 million." The audits are expected to be completed before the deal is closed. FTS plans to close the
acquisition within 60 days, Gallagher went on to say, "We plan to roll this acquisition into the newly formed FTS Wireless, Inc. (Nevada) along with the retail wireless business of FTS Wireless. If closed we expect the combined Company to generate 2006 sales of around $7 to $8 million with $1.9 to $2.3 million of net income."
Due to confidentiality agreements, FTS will not release the name of the target Company until the deal closes. FTS expects to secure financing through a private placement of new shares in FTS Wireless, Inc.
About FTS Group, Inc.
FTS Group Inc. (OTC BB: FLIP) is an acquisition and development Company focused on acquiring, developing and investing in emerging cash-flow positive Companies and viable business ventures. Its wholly owned subsidiary FTS Wireless is an emerging regional operator of retail wireless locations that market and sell next-generation wireless products and services and operate Wi-Fi HotSpots. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region. For additional information about FTS Group, Inc. or its subsidiary, please visit http://www.FTSWireless.com or review periodic filings with the
Securities and Exchange Commission at http://www.sec.gov.
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