Vyke acquires Callserve Communications

Vyke Communications Plc is to acquire UK VoIP service provider Callserve Communications Limited for up to £2.9 million. The deal is significantly below the £3.5 million projected price.

The deal is part of Vyke’s plan to expand in the UK market, and will provide Vyke with additional wholesale VoIP network assets and an enlarged UK operational base.

As well as its UK business, Callserve also has distribution networks in Africa and the Middle East, where customers will benefit from conversion to the Vyke product suite.

Callserve’s recorded revenues of £8.5 million in the year to 31 December 2007, with net liabilities at completion of around £1 million.

Vyke is funding the acquisition through the issue and allotment of up to 4,004,602 shares.

Vyke’s acquisition of Callserve is scheduled for completion on 30 January 2007.