GoAmerica, a provider of relay and wireless communications services for deaf, hard-of-hearing, and speech-impaired persons, announced losses for the third quarter ending September 30, 2007. Net losses were approximately $861,000 or $0.41 per diluted common share. Losses are up from second quarter losses of $786,000, or $0.36 per diluted share. Compared to last year’s third quarter, total revenue is up 4.3% to around $4.8 million.
In order to continue to grow, GoAmerica has entered into an agreement with Verizon to buy Verizon’s telecommunications relay services (TRS) division for $50 million in cash and up to an additional $8 million in contingent cash considerations. This purchase will be financed by issuing additional shares of GoAmerica convertible preferred stock and debt.
GoAmerica is also in a merger agreement with Hands On Video Relay Services. This deal will cost $35 million in cash and 6.7 million shares of GoAmerica common stock. Both deals require regulatory and stockholder approval.
“During the third quarter the Company received a financial commitment of $110 million from Clearlake Capital Group to enable two strategic transactions,” said Dan Luis, CEO of GoAmerica. “The two transactions – the Verizon TRS asset purchase and Hands On video relay merger – will enable GoAmerica to operate from a position of increased strength. We look forward to promptly closing these two transactions after obtaining stockholder and regulatory approvals.”
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