Cellphone Rental Companies Merge

UniverCell Holdings has said that it is to purchase its rival cellphone rental company, RentCell, a privately held company based in Atlanta, USA. Founded in 1998, RentCell provides short-term rentals and the sale of wireless phone products for use throughout the world. RentCell achieved approximately US$1 million in revenue in 2001.

Sean Fulda, chief executive officer of UniverCell Holdings, said, "This acquisition represents the first successful step of our aggressive, two-pronged growth strategy. UniverCell plans to acquire similar companies in the fragmented global cellular phone rental industry that is accretive to earnings and provides critical mass in the more than two billion dollar, untapped market. In addition, we anticipate signing strategic partnerships throughout the travel industry to increase volumes and maintain our high margins. The company's strong fundamental position enables UniverCell to implement this strategic plan resulting in 300% annual growth in each of the next three years."

The acquisition is subject to negotiation of definitive agreements, due diligence, regulatory approval and other customary conditions. Terms of the agreement were not disclosed."

Posted to the site on 4th March 2002