Velatel Closes Balkans AcquisitionWednesday, April 4, 2012
Velatel Global Communications, a San Diego-based provider of wireless broadband telecommunication networks, has closed the acquisition of Herlong Investments Ltd. and its operating subsidiaries, Novi-Net and Montenegro Connect, the company said April 2.
Velatel said it closed the acquisition by paying 500,000 euros along with credit for $1 million from a down payment deposit the company made to its preferred equipment vendor, ZTE Corp. The proceeds will be used for deployment and expansion of Novi-Net’s and Montenegro Connect’s wireless broadband networks.
The company said the acquisition gives it a low cost entry into the geographic center of the Balkan countries and could lead to other opportunities in the region. Velatel also has project operations in China and Peru. Target markets include countries in Latin America, the Caribbean, Southeast Asia and Eastern Europe, the business said.