GLENTEL Inc. agrees to acquire Wireless Zone® - A 428- store Verizon Wireless U.S. retailer

GLENTEL Inc. agrees to acquire Wireless Zone® - A 428- store Verizon Wireless 
U.S. retailer 
BURNABY, BC, Nov. 27, 2012 /CNW/ - GLENTEL Inc. (TSX: GLN) announced today the 
signing of a binding agreement through its wholly-owned United States of 
America subsidiary GLENTEL (USA), Inc. to purchase 100% of the ownership of 
Automotive Technologies, Inc. ("ATI") dba Wireless Zone®, a 428-store 
franchise system in the United States that sells Verizon Wireless products and 
Wireless Zone is one of six exclusive Verizon Wireless National Premium 
Retailers and is headquartered in Middletown, Connecticut. Founded in 1988 by 
Russell Weldon and Michael Geer as "The Car Phone Store®," now operating as 
Wireless Zone, the company has become one of the largest and most respected 
Verizon Wireless Premium Retailers. GLENTEL owns and operates Diamond 
Wireless, which is also a Verizon Wireless National Premium Retailer in the 
United States. 
"GLENTEL recently acquired the AMT Group/Allphones in Australia and now we are 
delighted to welcome Wireless Zone in the United States to our company," 
stated Thomas Skidmore, GLENTEL's President and Chief Executive Officer. 
"Wireless Zone has consistently delivered strong growth in sales and 
profitability. Wireless Zone complements our Diamond Wireless stores with very 
little store overlap. This acquisition provides us with good concentration of 
stores in the eastern U.S. states, where more than 65% of the population is 
situated, and will allow us to accelerate our growth nationally representing 
Verizon Wireless. The addition of ATI/Wireless Zone brings the total number of 
locations operated by GLENTEL in Canada, Australia, and the United States to 
more than 1,180." 
Kevin Sinclair has agreed to continue with the company as ATI/Wireless Zone's 
Managing Director. He has managed the strategic and profitable growth of 
Wireless Zone for over 18 years. Kevin Sinclair and his senior management team 
have entered into employment agreements and, for certain consideration, ATI 
will issue them share equivalent rights which include put and call provisions 
for an aggregate total of 4.2% of ATI's distributed operating profits. 
"We are excited to join a company that shares the same values of quality, 
service, philanthropy and integrity," stated Kevin Sinclair, ATI/Wireless 
Zone's Managing Director. "With our joint commitment to the Wireless Zone team 
members, franchise owners, and retail customers, we are confident that 
Wireless Zone will help foster and accelerate GLENTEL's growth in the United 
States. With the backing of a solid public company, we can build our franchise 
system into a stronger network of retail locations while growing the Wireless 
Zone brand nationwide." 
Wireless Zone has a long-term exclusive agency agreement with Verizon 
Wireless, operating 409 franchised and 19 corporate stores in 28 States, with 
273 stores in the Northeast (Connecticut, Delaware, District of Columbia, 
Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, 
Pennsylvania, Rhode Island, Vermont and Virginia), 115 stores in the Midwest 
(Illinois, Indiana, Iowa, Kansas, Kentucky, Pennsylvania, Michigan, Minnesota, 
Missouri, Ohio, Oklahoma, and West Virginia), and 40 stores in the Southeast 
(Florida, Georgia, Louisiana, and Texas). Wireless Zone has a focus on growth 
based on its national contract with Verizon Wireless. Wireless Zone operates 
as a franchisor registered in all 50 states in the U.S., offering GLENTEL the 
opportunity to grow Wireless Zone beyond its current base of 28 U.S. states. 
Diamond Wireless currently operates in 17 states with over 210 corporately 
owned retail mall-based stores, primarily in the western and southeast regions 
of the United States and will continue its retail mall expansion plan into the 
eastern United States. 
Transaction Summary 
The transaction is expected to close in the next two to four weeks, and is 
subject to the fulfillment of certain customary conditions. The total purchase 
price for 100% stock and other consideration is USD $83.3 million, subject to 
closing adjustments. The purchase price will be funded by GLENTEL's cash, 
short-term investments, and committed bank debt. Canaccord Genuity acted as 
exclusive financial advisor to Automotive Technologies Inc. (Wireless Zone). 
Financial Highlights 
Combined pro forma unaudited trailing twelve-month financial highlights of 
GLENTEL Inc. in millions of Canadian dollars, inclusive of the recently 
completed acquisition of Australian-based AMT Group and the pending 
acquisition of ATI, dba Wireless Zone: 
|             |                12-months Ended June 30, 2012      |
|             |GLENTEL|  ATI   |AMT Group|           |Consolidated|
|             | Inc.  |Wireless|Allphones|Adjustments| Pro Forma  |
|             |       |  Zone  |         |           |            |
|Sales        | $617.7| $545.8*|   $167.7|    ($28.5)|    $1,302.7|
|Normalized   |       |        |         |           |            |
|net earnings |       |        |         |           |            |
|before       |       |        |         |           |            |
|amortization,|       |        |         |           |            |
|finance      |  $48.6|   $15.3|    $19.2|     ($3.3)|       $79.8|
|income and   |       |        |         |           |            |
|expenses,    |       |        |         |           |            |
|non-recurring|       |        |         |           |            |
|items, and   |       |        |         |           |            |
|taxes        |       |        |         |           |            |
* Includes a wholesale business that sells mobile phones and other goods and 
services to its franchisees 
The unaudited pro forma financial information reflects pro forma adjustments 
and expected synergies based on currently available information and 
assumptions that management of GLENTEL believes provide a reasonable basis for 
presenting the significant effects of the completion of the share purchase 
transactions. Adjustments in place adjust results to account for GLENTEL's 83% 
ownership interest in AMT Group. The above unaudited pro forma consolidated 
financial information is for informational purposes only and is not 
necessarily indicative of what the financial position and results of 
operations would have been had the completion of the acquisitions occurred on 
or before June 30, 2011 with assumption of 12-month trailing earnings ending 
June 30, 2012, nor does it purport to be indicative of the financial position 
as of any future date or results of operations for any future period, nor the 
financial position as determined under GAAP. Actual figures may differ 
significantly from those presented above. 
GLENTEL (TSX: GLN) is the largest independent multi-carrier mobile phone 
retailer in Canada and a leading provider of innovative and reliable 
telecommunications services and solutions in North America. Founded in 1963 
and headquartered in Burnaby, BC, Canada, GLENTEL comprises four operating 
divisions - Retail Canada, Retail U.S., Retail Australia and Business - that 
service thousands of consumers and commercial communications customers. The 
company currently operates over 750 corporate stores with more than 330 
locations in Canada located nationally in retail malls, Costco Wholesale 
stores, and business centers; more than 210 retail locations in the United 
States; and more than 210 retail locations in Australia. In addition, Target 
Canada has licensed the operation of over 125 mobile communications sales and 
service kiosks within its stores to GLENTEL under the brand Target Mobile®, 
commencing in 2013. To its business and government customers, GLENTEL offers 
wireless service, rental equipment, satellite and terrestrial network systems 
and wireless asset monitoring. GLENTEL offers a choice of network carrier and 
wireless device or mobile phone to Canadian and Australian consumers and 
offers the family of wireless products and services of Verizon Wireless as one 
of its select six National Premium Retailers in the United States. GLENTEL 
operates its business under the trading names GLENTEL Wireless, WIRELESSWAVE, 
WAVE SANS FIL, Tbooth Wireless, La Cabine T Sans Fil, WIRELESS etc., SANS FIL 
etc., Mac Station, Diamond Wireless - a Verizon Wireless National Premium 
Retailer in the U.S., and Allphones in Australia. 
Forward-Looking Statements 
Statements in this release relating to matters that are not historical fact 
are forward-looking statements based on current expectations, forecasts and 
assumptions that involve risks and uncertainties that could cause actual 
outcomes and results to differ materially. Factors that could cause or 
contribute to such differences include, but are not limited to, general 
economic conditions, changes in technology, reliance on third-party 
manufacturing, managing rapid growth, limited intellectual property 
protection, and other risks and uncertainties described in GLENTEL's public 
filings with securities regulatory authorities. 
For a copy of GLENTEL's annual report or for additional information, visit or 
Investor Relations Contact: Jas Boparai, Chief Financial Officer GLENTEL 
Media Contact: Lois Grierson GLENTEL Inc. 
SOURCE: Glentel Inc. 
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CO: Glentel Inc.
ST: British Columbia
-0- Nov/27/2012 23:18 GMT
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