Xeta Buying Business: Recurring Service Revenue Will Be Gained.
By Robert Evatt, Tulsa World, Okla.
Oct. 4–Xeta Technologies Inc. has agreed to purchase the commercial division of HCI Technologies Inc., a Washington, D.C.-based provider of voice and data systems integration and maintenance services.
Robert Wagner, chief financial officer of Broken Arrow-based Xeta, said the buyout price involves an unusual formula.
“The purchase price is based on an earn-out derived from gross profits paid quarterly over the next three years,” he said Wednesday in an interview. “We don’t know what the final price will be at this point.
Once the purchase is completed in 45 days, Xeta will gain approximately $2.5 million in annual recurring service revenue, Wagner said.
Greg Forrest, Xeta’s president and CEO, said in a news release that HCI’s services will add value to Xeta’s products and services, which include enterprise-class communications solutions, installation and service in the field of converged communications solutions for voice and data applications.
“HCI earns recurring service revenue by providing service on our core product lines to Fortune 1,000 customers,” Forrest said. “Additionally,
this acquisition broadens our physical presence in the eastern United States and introduces new customer and wholesale service relationships to Xeta.”
The 20 employees in HCI’s commercial division are spread throughout the East Coast and Upper Midwest regions. Wagner said some of HCI’s employees will be integrated into Xeta, which currently employs 340 people.
——
Robert Evatt 581-8447 robert.evatt@tulsaworld.com
—–
To see more of the Tulsa World, or to subscribe to the newspaper, go to http://www.tulsaworld.com.
Copyright (c) 2007, Tulsa World, Okla.
Distributed by McClatchy-Tribune Information Services.
For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
NASDAQ-NMS:XETA,