For $10 total, Miami’s Next Group Holdings Inc. (NXGH), a mobile banking and telecommunications firm specializing in underserved and emerging markets, recently completed the acquisition of Tel3 from its own chairman and CEO, Arik Maimon.
With over $3 million in revenues in 2015, including a gross profit margin of 31.5 percent, Tel3 operates as a marketing group, currently with 25,000 customers. Maimon had previously acquired Tel3 from a third party and honored his personal commitment to Next Group with the unusually low compensation of $10 rather than lucrative shares customarily associated with such agreements.
“I believe that NXGH's acquisition of Tel3 at this fantastic price 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," Michael De Prado, NXGH president and COO, said, adding that the action will position NXGH advantageously.
NXGH expects to continue increased revenue streams previously attained by Tel3 via its wholly owned subsidiary, Meimoun & Mammon LLC (d/b/a M&M Telecom). Matthew Schulman has been appointed CEO of M&M Telecom, which now will be capable of offering upgraded services and benefits to its customers.
"We believe that bringing Tel3 under the umbrella of M&M Telecom will produce significant revenue growth and profitability for NXGH,” Maimon said of the transaction. “I ask for continued support to the company and its leadership … This aggressive step shall pave the way to convert the Tel3 customer base into financial NXGH customers."
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