Platinum Funding Group provides $66 Million Factoring Facility to Velocita Wireless to support acquisition of SkyTel, from Bell Industries, Inc.
NEW YORK (June 17th, 2008)—Platinum Funding Group, a leading factoring company, has signed an agreement to provide a $66 million accounts receivable factoring facility to a leading provider of wireless data services. The accounts receivable factoring facility was a key element of the funding package which enabled the New Jersey based network operator to complete the acquisition of a complimentary wireless technology business, providing nationwide wireless data and messaging services.
With its headquarters in New Jersey, this national wireless network operator focuses on the M2M market. The company offers wireless data machine-to-machine (M2M) products including automatic vehicle location (AVL), telematics, point-of-sale, security and energy solutions to enterprise and government customers. Its network operates in 50 states covering 93 percent of all U.S. businesses and 220 million people.
The accounts receivable factoring facility provided by Platinum Funding Group will also assist the combined entity to consolidate its position as one of the leading M2M providers in the USA providing comprehensive, reliable and secure communication solutions.
“Platinum’s ability to think outside the box, and find creative solutions for complicated transactions is a necessity in the current financial environment” said Eyal Levy, founder and CEO of Platinum Funding Group. “Platinum’s assistance in several acquisitions lately, when liquidity is limited, makes us an attractive instrument for investment banks, private equity and venture capital firms.”
Russell Backhouse, the CFO who co-ordinated the transaction with Platinum added “At a time when borrowing facilities are extremely difficult to negotiate Platinum distinguished themselves with their speed of decision, flexibility and willingness to work to get the deal done.”
Mark Hull, CEO said “This acquisition clearly benefits all of our customers as together we are an even stronger company with a long-term commitment to messaging, data and the M2M market”.
