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WirelessDevNet.com Press Release
ZIM Announces Agreement to Acquire Leading UK SMS Company EPL Communications
ZIM enhances its global SMS reach and revenue stream through strategic acquisition
Ottawa, CANADA, February 5, 2004 – ZIM (OTCBB: ZIMCF), a leading mobile consumer and enterprise application developer for the global two-way SMS (Short Message Service) channel, today announced that it has agreed to acquire leading UK-based SMS firm EPL Communications Limited in a combined share and cash deal worth approximately US$ 3.5 million. The acquisition allows ZIM to further penetrate the global SMS market for premium, bulk, location based and interactive two-way SMS delivery. ZIM expects the transaction to be completed by mid-February, subject to the completion of customary transaction documents and closing conditions.
“With EPL’s powerful SMS delivery platform and impressive European customer base now joining ZIM, we are further extending our leadership and global presence in the rapidly growing SMS marketplace,” said Dr. Michael Cowpland, President and CEO of ZIM. "This acquisition is part of our international growth strategy and is the first such acquisition since we announced this strategy in January 2004.”
Founded in 1999, EPL is a top ten SMS provider in the UK with customers such as the BBC and EMI Music. EPL’s partners include four of the world’s largest SMS network operators; Vodafone, Orange, O2, and T-Mobile. The main products of EPL include Premium SMS delivery with direct mobile telephone bill charges, a Location Gateway for Location Based Services (LBS) including traffic and weather, a high performance global inbound SMS solution called Virtual Mobile that involves two-way SMS interaction of applications and services and a Bulk SMS service for SMS campaigns that delivers to a network of some 250 mobile operators worldwide.
“ZIM and EPL share a common vision,” stated Mr. Stephen Wright, Founder and CEO of EPL Communications. “We are very excited about joining forces with ZIM to lead the global messaging market and to provide the best of current and next generation mobile technologies.”
EPL was the first company to launch cross-network premium mobile services, combined MT (mobile terminated) messaging and LBS services in the UK, and is a preferred aggregator within the UK. EPL Communications is headquartered in London, England and had revenues estimated at US$ 2.4 million for their year ended January 31, 2004.
ZIM continues to advance the Company’s growth strategy, and, in part to support this strategy, ZIM recently raised approximately US$ 900K in a private placement of approximately 1.2 million units at a price of US$ 0.75 per unit. Each unit comprised one common share and one six-month share purchase warrant for an equal number of common shares at US$ 0.75 per share. Proceeds from the placement further strengthen ZIM’s cash position and balance sheet.
For this transaction, EPL Communications was advised by Edengene Finance Limited (www.edengene.com), the corporate finance arm of the London-based growth and venturing business, Edengene. Edengene Finance Limited is authorized and regulated by the Financial Services Authority within the UK.
About ZIM
ZIM (ZIM Corporation is a public company quoted on the NASDAQ owned and operated OTCBB under the ticker symbol ZIMCF) is headquartered in the high technology epicentre of Canada – Ottawa. ZIM is a leader in consumer and enterprise applications for the global two-way SMS channel, including its mobile e-mail and office tools, ZIM SMS Mail and ZIM SMS Office. ZIM is also a provider of enterprise-class software and tools for designing, developing and manipulating database systems and applications. Through its two-way SMS expertise and mobile-enabling technologies, ZIM bridges the gap between data and mobility. For more information on ZIM and its customers, partners and products, visit: www.zim.biz.
About EPL Communications
Founded in 1999, EPL Communications Limited is one of the UK's fastest growing providers of wireless GSM services, offering premium SMS, location based services, 2-way interactive SMS and Multimedia messaging solutions. EPL’s innovative services and tier-1 operator connections ensure high performance, cost effective professional solutions to SMEs and corporations looking to develop and deliver mobile services. For more information, visit: www.eplcommunications.com
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