View Tech Buying Sales Agent for Bell Atlantic

Camarillo-based View Tech Inc. has agreed to acquire Vermont Telecommunications Network Services of Burlington, Vt., an agent selling Bell Atlantic services in New England and upstate New York.

As a result of this acquisition, Network Services will become a wholly owned View Tech subsidiary, expanding View Tech’s offices to 20 nationwide and increasing the company’s customer base and geographic presence.

Under the terms of the agreement, View Tech will purchase virtually all of Network Services’ assets for a combination of $2.65 million in cash, a note and common stock. The purchase price also includes assumption of certain Network Services liabilities and contingent payments of up to $750,000 over three years if certain earnings are achieved.

The acquisition, which is expected to close this month, is subject to final due diligence and a financing contingency.

Zoltan B. Keve, Network Services’ president and chief executive officer, will join View Tech’s management team, said Paul C. O’Brien, View Tech’s chairman of the board.

Network Services is an authorized sales agent for Bell Atlantic in Vermont, New Hampshire, upstate New York and western Massachusetts. It currently has four offices and 28 employees, including a sales force of 14.

Through these new offices, View Tech will not only sell Bell Atlantic services but will also market its own voice, video and data communications equipment to Network Services’ installed customer base.

In 1996, Network Services’ operating income was $762,198 on revenues of $2.4 million.