MIAMI, June 9, 2016 /PRNewswire/ - Next Group Holdings, Inc. (OTCQB: NXGH) announced today that it has signed an agreement with Arik Maimon, who serves as NXGH's CEO and Chairman, under which, subject to the receipt of a fairness opinion from an independent expert on such transactions, NXGH will acquire the telecom marketing brand "Tel3" together with the assets and client database of Tel3 from Mr. Maimon. NXGH's Board of Directors approved the transaction unanimously and expects to close the acquisition of Tel3 by June 20, 2016.
Tel3 is a marketing group that had revenues over $3 million in 2015 with 31.5% gross margin, 25,000 active customers, and a database of 300,000 current and former clients.
Mr. Maimon, who recently acquired Tel3 from a third party, has agreed to sell Tel3 to NXGH on substantially similar terms to the terms of the transaction under which he personally acquired the Tel3 assets, subject to the fairness opinion, a unanimous vote in favor of the transaction by all disinterest members of NXGH's board, and other regulatory considerations.
"I believe that NXGH's acquisition of Tel3 will provide great value and substantial benefits to NXGH and its shareholders, as this deal will bring us a significant new revenue stream, additional profits and a large new customer base', said Michael De Prado, President and COO of NXGH. "This is a major step forward that will enhance NXGH's position in the markets for its telecommunications and its financial products", added De Prado.
NXGH plans to offer enhanced financial and telecom services and products to those Tel3 customers that opt-In to receive special offers and rewards based on their daily use of NEXTCALA and M&M Telecom offerings.
NEXTCALA financial products will provide attractive pricing and extra benefits to unbanked and underbanked consumers. Rewards programs will also help to lower costs and improve lifestyle and family connections.
NXGH, through its wholly owned subsidiary, Meimoun & Mammon LLC (which does business as M & M Telecom) expects to increase the revenue streams that were historically achieved by Tel3. M & M Telecom has had FCC 214 "Common Carrier" Authority since 2011, and is a contributor to the FCC Universal Service Fund. As a result of NXGH's acquisition of Tel3, M & M Telecom will be able to offer and provide extra services, benefits and rewards to customers.
"NXGH's acquisition of Tel3 assets will represent a major step forward to help us develop M & M Telecom into a major telecom provider and bring NEXTCALA to the forefront in the everyday financial solutions markets," said Arik Maimon, NXGH's chairman and CEO. "We believe that bringing Tel3 under the umbrella of M & M Telecom will produce significant revenue growth and profitability for NXGH."
About Us: NXGH is a corporation headquartered in Miami, Florida, which, through its operating subsidiaries, engages in the business of using proprietary technology and certain licensed technology to provide innovative mobile banking, mobility, and telecommunications solutions to underserved, unbanked, and emerging markets. NXGH's principal executive offices are located at 1111 Brickell Avenue, Suite 2200, Miami, Florida 33131, and its telephone number at that location is (800) 611-3622. NXGH's web address is www.nextgroupholdings.com.
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SOURCE Next Group Holdings, Inc.