WINNIPEG, Jan. 4 /CNW/ - MPVC Inc. (TSX-V: MPI) announced today that its wholly-owned subsidiary, OneContact, Inc. ("OCI"), has entered into a letter of intent (the "LOI") with Globalive Communications Corp. ("Globalive"). The LOI does not set forth all of the terms of the final agreement between the parties, but OCI and Globalive have agreed to use good faith efforts to develop and execute definitive agreements (the "Transaction Documents") within thirty days. The initial term of the Transaction Documents shall be five years, and shall provide for OCI taking over operational responsibility for call centre services for Globalive's wholly-owned subsidiary Yak Communications (Canada) Inc. ("Yak"), including for Yak's residential and business long distance customer care, technical support, provisioning and billing support (the "Yak Services").
OCI began providing and invoicing Globalive for the Yak Services on December 1, 2006. Assuming that the contract is finalized on the terms set forth in the LOI, it is management's belief that OCI revenue from Globalive is expected to reach up to $1.4 Million CDN annually, over the initial term of the Transaction Documents, though this estimate is subject to adjustment based on workload and volume.
The LOI also provides that OCI shall negotiate offers of employment to most existing Yak call center employees and facilitate the transition of such employees to the OCI payroll. Such transition is to be completed by December 31, 2006.
Finally, Globalive has agreed in the LOI to provide certain facilities at no cost to OCI until February 28, 2007, and OCI and Globalive have agreed in principle on a sub-lease of those facilities to OCI beginning March 1, 2007.
"OCI's ability to move quickly will be instrumental in helping to make the acquisition of Yak an even greater success for Globalive. Our goal is to rapidly grow our customer base, using OCI to underpin both customer acquisition programs as well as to provide best-of-class ongoing care of our valued customers," Anthony Lacavera, CEO and Founder, Globalive Communications Corp.
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