WorldCom, Inc. To Acquire BLT Technologies, Inc., Top Supplier of Retail Prepaid Phone Cards
JACKSON, Miss. (August 1, 1996)--
WorldCom, Inc. (Nasdaq/NM:WCOM), already a prominent provider of
prepaid phone cards in promotional and resale markets, has signed a
definitive agreement to acquire Vancouver, Wash., based BLT
Technologies, Inc., the top U.S. supplier of prepaid phone cards
through retail channels.
Terms of the agreement to acquire the privately held company were
not disclosed. The agreement is expected to be formally completed in
late 1996 or early 1997.
Bob Sternberg, president and chief operating officer of BLT
Technologies, will continue to head the rapidly growing company as a
business subsidiary of WorldCom, Inc. The new business unit will
function as a part of WorldCom, Inc.'s alternate channels
distribution program.
BLT Technologies, perhaps best known for its TALK N TOSS prepaid
phone cards distributed through major retailers, vending machines,
and financial institutions nationwide, has seen its revenues grow
from $3.5 million in fiscal 1994 to $16.5 million in fiscal 1995 and
$36.6 million in fiscal 1996, which ended May 31. It has a current
annual revenue run rate of more than $50 million.
"BLT Technologies has developed a solid reputation for using
new technology and customer-oriented products to fuel its exceptional
growth," said Mike Grimley, senior vice president of alternate
channels for WorldCom, Inc. "Combined with our PhonePass
product, which gives us a strong presence in the prepaid phone card
market, WorldCom, Inc. now will have unsurpassed capabilities in this
important segment."
Sternberg said he and Tom Holce, who is retiring as BLT
Technologies chairman and chief executive officer, sought the new
affiliation with WorldCom, Inc. in order to gain the competitive
resources of a large telecommunications provider.
"While our growth has been phenomenal, we recognized the
potential advantages of joining with a major facilities-based
carrier," Sternberg said. "This is excellent news for our
customers, distributors, agents, suppliers and the industry at
large.
"We believe that virtually everyone will recognize the
positive impact of this agreement on both WorldCom, Inc. and BLT --
especially at a time when the prepaid phone card service that BLT
helped to pioneer in the U.S. is now becoming established as a core
telecommunications service for many Americans."
In addition to its retail distribution of prepaid phone cards
widely available in convenience stores and a variety of other
outlets, BLT Technologies is a leader in the development of a
point-of-sale activation system for its major retail customers.
By utilizing a credit-card-like card swipe system to activate
cards at the time of purchase, BLT provides unprecedented inventory
control capabilities that protect against the potential for the theft
of activated or "hot" cards. This system expands the
display and marketing opportunities for the cards and enhances
consumer confidence in the product.
WorldCom, Inc. is one of the largest long distance
telecommunications companies in the United States, offering domestic
and international voice, data and video products and services to
business customers, other carriers and the residential market. The
company operates a nationwide digital fiber optic network in the
United States and has worldwide network capacity. The common shares
of WorldCom, Inc. trade on The Nasdaq Stock Market's National
Market under the symbol WCOM.