Etelcharge.com refused PaymentOne acquisition due to economy downturn

Etelcharge.com has announced today that it has abandoned its proposed acquisition of PaymentOne, reports Market Wire. "Given the general economic downturn and the increased risk posed to the success of this acquisition, we have determined the PaymentOne deal is too risky to complete," said Rob Howe, Chairman and CEO of Etelcharge.com. "We will move ahead to achieve our strategic goal of nationwide telco coverage through our current telco billing and collections provider."

Earlier this year the company has announced the acquisition of PaymentOne. "With the acquisition of PaymentOne, Etelcharge.com gets a mature company that has billed over $2.5 billion in client transactions through telco billing. PaymentOne's estimated annual revenue of $13 million will establish a significant revenue base for our company. The acquisition, if completed, will also give us nationwide telco coverage, a set of blue-ribbon merchant-customers, and access to 50 million subscribers who have already used bill-through-phone-bill services. Equally important, we bring into our company a stellar group of people who are among the most experienced in the industry. We get mature, time-tested systems, significant intellectual property, and contractual relationships with telco network operators nationwide, including the top names in the US telco industry," stated that time Rob Howe.