Telcombrokers recently purchased the assets of Tru Choice Communications, a master agency based in Corona, Calif., which was owned by the founders of Salestream Software, makers of MasterStream channel management software.
Telcombrokers, a master agency based in Santa Ana, Calif., purchased all of Tru Choices customer and agent contracts on Dec. 21. This acquisition is one in a series of planned purchases by Telcombrokers, according to the companys founder and CEO Dominic Antonini. “We are very pleased to complete the acquisition of the TruChoice agents and customers. This acquisition marks a step forward in a strategic initiative to rapidly expand both our customer and agents bases through 2007 and beyond, he said.
Tru Choice adds more than 35 accounts and about 30 agents (10 active) to Telcombrokers stable, which now includes about 1,500 customers and 200 agents (75 active). I look at the deal in terms of commission dollars, said Antonini. Telcombrokers is bringing in about $240,000 a month in commissions and this deal will increase that to about $260,000 a month.
It also allows Salestream Software founders Steve Roberts and Jeff Fraser the ability to focus on their growing software business. “The success of Salestream Software really necessitated this transaction long ago but searching for a buyer was just never made a priority, said Roberts, who is president of Salestream Software. It is fair to say we were primed and ready when Mr. Antonini approached us with an offer.”
Fraser, vice president of Salestream Software, said the sale represents a strategic win for Telcombrokers in more ways than one. “Dominic was smart to buy out Tru Choice because he gets all of the benefits of having an overnight expansion in agents, customers and revenue, which is a given, but he also knows that buying Tru Choice allows [Salestream Software] to focus 100 percent on customer-development needs, he said. I’m sure he’s preparing his list of enhancements already!”
The proceeds from the sale of Tru Choice will be used, in part, to hire additional programmers to support development of the MasterStream software, Antonini said.
Oddly, through the Telcombrokers umbrella, Tru Choice agents now will have access to the MasterStream software, which Telcombrokers has implemented but Tru Choice has not so that its founders could avoid a conflict of interest.
Antonini said Telcombrokers expects to close another acquisition in the next 30 to 45 days. If it closes, the deal would add another 35 agents and $60,000 in commissions, he said.
“By growing both organically and through acquisitions, I hope to complete my seven-year plan in half the time, he said. Antonini said he is interested in acquiring bases of agencies with owners that are looking to retire or move into other businesses that will not compete with Telcombrokers.
Salestream Software www.salestreamsoft.com