Norcom Agency Sales is now part of BCN Telecom Inc. (Booth 732), formerly NUI Telecom Inc. Norcom was acquired at the end of 2003 as part of a transaction that also included NUI Corp.’s sale of NUI Telecom to its management team for $10.8 million in mid-December. Under new ownership, the company will change its name to BCN Telecom Inc.
NUI Telecom President and CEO Dick Boudria led the buyout, which included other unnamed investors, and will retain his position with the new company.
The transaction also included the expedited buyout of Norcom Agency Sales for $3.1 million. NUI Telecom was scheduled to purchase NAS in February 2004 for stock, but Boudria renegotiated the deal as part of the NUI Telecom buyout.
The Norcom name will persist for six months to a year during the transition. In addition, Norcom principals Eric Mostrom and Julian Jacquez, while not employees of the combined company, are staying involved in the management of the channel program. "BCN understands the relationship that we have with the agents and that they are more confident [in the program] knowing that J.J. and I are still here," says Mostrom, who was president of Norcom. Jacquez served as vice president.
Mostrom, Mostrom’s father John and Jacquez have formed another company, Cornerstone Technologies, which will function as a master agency for BCN going forward. Cornerstone will not develop its own downline and was created mainly as a means for the principals to get paid.
In addition, Neph Rodriguez, former Norcom general manager, and Lisa Falaguarra, former Norcom agent support manager, have joined BCN to manage the agent channel Norcom built.
"All of the agent relationships remain intact," says Jacquez. "All principals of Norcom are working with the new company going forward. Our priority is a smooth transition of the agents into the new company."
Jacquez says that as part of the BCN acquisition, a number of agents got bonus payments – the second round in 18 months, bringing the total to more than $5 million in agent bonuses. A payout also was triggered in late 2001 when the company first sold to NUI. The second sale in December 2003 was on the growth of the base from 2001-2003. "We knew we would sell the base again in late 2003, so we signed up agents to the program all over again and they had 18 months to bill as much as they could," explains Mostrom.
Jacquez says Norcom/BCN will be actively recruiting new agents. He also says the company will be making "significant improvements" to the local product set by expanding it geographically, and improving the rates as well as the commission and bonus structure.
"The directive from BCN is they want aggressive program with customers and agents," says Jacquez. "Those are the general marching orders."