|Elephant Talk and Iusacell Sign Settlement Worth Approximately $13.5 Million for Mobile Network Enablement Agreement |
NEW YORK, June 16, 2015 /PRNewswire/ -- Elephant Talk Communications Corp. (NYSE MKT: ETAK) ("Elephant Talk" or the "Company"), a global provider of Software Defined Network Architecture (ET Software DNA® 2.0) platforms and cyber security solutions, today announced that after a productive commercial relationship lasting several years, Grupo Iusacell ("Iusacell") and Elephant Talk have ended their relationship, agreeing to a global settlement worth approximately $13.5 million in favor of Elephant Talk, consisting of 12.6 million in cash and the remaining balance in exchange for certain obligations of Elephant Talk to Iusacell. The cash payment will be reflected on the Company's financial reports for the quarter ended June 30, 2015. The reason for the termination was to allow for AT&T and Iusacell to ensure consistency of infrastructure suppliers in their businesses. The amicable parting of the companies in no way reflects on the performance of Elephant Talk or its technology and neither parties rule out the possibility of future business relationships.
Steven van der Velden, Chairman and CEO of Elephant Talk stated: "This settlement properly reflects our contract terms. This settlement provides us with significant means to carry out our business plans by providing an important cash settlement and allowing us to remain the owner of the platforms in Mexico. With this successful negotiation behind us, we now will re-focus all of our time and assets on our new business efforts in North America, Latin America, Europe and the Middle East where we have near-term opportunities to deploy our ET Software DNA Platforms."