3. The Transaction
On or about May 3, 2006, Rapid Link and Apex executed a Stock Purchase Agreement3 (Agreement) whereby Rapid Link acquired all of the issued and outstanding stock of Telenational from Apex. As a result, Telenational became a wholly-owned subsidiary of Rapid Link. The Agreement did not involve the transfer of any operating authority, assets, or customers of Telenational.
Applicants failed to obtain prior approval from the Commission for Rapid Link's acquisition of ownership and control of Telenational. However, they represent that there were no changes in rates, terms or conditions of service as a result of the transfer, and Telenational continues to operate under the same name. They further represent that the transaction brought administrative efficiencies from co-location of principal offices in Omaha, expertise in serving military personnel, an ability to provide "premier"4 Voice Over Internet Phone (VoIP) services in niche markets, a better slate of products, and "synergies" between Rapid Link and Telenational.
3 A copy of the Stock Purchase Agreement was provided as Exhibit E to the Application.
4 Joint Application at 7.
