KDDI acquires 51% of Locus Telecommunications

KDDI acquires 51% of Locus Telecommunications
Locus Telecommunications has announced that KDDI has acquired 51% of Locus Telecommunications, Inc., in a transaction that closed on January 22nd, 2010.
The combination of the two companies will greatly strengthen Locus' competitive position in the industry, while creating an entity strong in both retail and wholesale businesses. Locus' market leadership position in the prepaid telecom industry and its strong retail distribution network will be combined with KDDI's vast global networks and resources. This would allow the two companies create synergy by quickly building up their scale, which should result in enhanced buying power and reduced costs. The two companies also plan to work together to bring customers more innovative, high-quality, competitively-priced products in the future, by leveraging the expertise and resources of both companies, allowing for further penetration in growing markets.

Jason Chon, CEO of Locus Telecommunications, Inc., says, "We look forward to taking advantage of this great opportunity. We will build scale in our long distance business, while introducing more innovative wireless broadband products through our national retail chain distribution network, taking advantage of KDDI's global telecommunication network and expertise in wireless business." Daichi Nozaki, VP of Marketing at KDDI America, Inc., states, "This deal will provide great advantages to KDDI. We are pleased to have gained access to Locus' vast distribution networks while garnering more traffic from Locus for our wholesale business."

No changes in Locus' management team or operations is anticipated, in an effort to ensure the stability of Locus' current operations and existing business relationships. Both Chon and Nozaki comment, "We are very happy and excited to build this relationship between the two companies and look forward to working together to deliver future successes."
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