Amaral to lead combined KeyTech and CellOne
KeyTech and CellOne have created a new full-service telecommunications combination, sealing a series of linked deals involving both companies and US-based Atlantic Tele-Network.
Frank Amaral will lead the combined company. For the past seven years he has been chief executive officer of CellOne.
Meanwhile Lloyd Fray, CEO of KeyTech, is to step down on May 16 after 13 years with the company.
In a statement, KeyTech said combining the businesses would result in residential and business customers receiving enhanced options and value pricing, with new capital bringing accelerated investment in Bermuda and Cayman.
It is the latest change for KeyTech, which less than a year ago absorbed CableVision Bermuda.
KeyTech is the parent company of internet provider Logic, and previously shared ownership of CellOne with Massachusetts-based ATN.
However, in a series of linked deals, KeyTech has taken sole ownership of CellOne after ATN agreed to give the company its shareholding of the company, together with $42 million, in return for further shares in KeyTech that took its shareholding to 51 per cent.
The transaction was announced in October, but regulatory approvals in a number of jurisdictions were needed before all the pieces of the jigsaw deal could be finalised.
Last month the Regulatory Authority of Bermuda approved the consolidation of ATN and KeyTech, while the Information and Communications Technology Authority in the Cayman Islands gave consent for WestTel Ltd to transfer its interest in KeyTech to ATN.
In a statement yesterday, KeyTech said the transaction “brings together CellOne's premier mobile services and network with KeyTech's Logic and Cablevision brands that provide extensive broadband internet, telephone and video services.
“Together, the group will deliver mobile, fixed and international telecommunication services across Bermuda.”
KeyTech said businesses will be able to take advantage of CellOne's “island-best” network coverage and Logic's scalable network.
Gary Phillips, chairman of KeyTech, said: “With this transaction completed, we can now compete for consumers' and businesses' full range of telecommunications needs.
“For years, our companies were separately investing in technology and infrastructure and offering best-in-class services. As a unified group, and with the benefit of additional capital from ATN, our investments will accelerate and lead to expanded services for customers and economic growth for Bermuda.”
Incoming KeyTech CEO Mr Amaral will work with the company's new board to set the organisation's strategic direction and lead its day to day operations in Bermuda and Cayman.
He said: “With the decades of experience within the KeyTech group and a local leadership team, we are ready to do even more to amaze customers through great service and enhanced product offerings.
“Over the coming months, Bermuda and the Cayman Islands will begin to experience the benefits of our collective operations. Our goal is to provide very efficient service, the most innovative options and highly competitive pricing.”
Mr Phillips said: “The board and I want to thank Lloyd Fray for his many years of service and we are grateful for the accomplishments under his leadership that made KeyTech attractive to this investment by ATN. We look forward to continued success under Frank's leadership and direction.”
ATN is a trading company that invests in the communications and renewable-energy industries. The company's association with Bermuda dates back to 1998 when it was a primary investor in CellOne.
It is listed on the Nasdaq stock exchange and has a market capitalisation of $1.2 billion.
Among ATN's subsidiaries is Commnet, which provides telecommunications to much of the central and western US states. ATN also has telecoms subsidiaries in the US Virgin Islands, Aruba, and Guyana.
Last week the company reported first quarter revenues of $89.7 million, up 5 per cent year-on-year, while its profit for the quarter was $6.1 million.