Axesstel has acquired Flexcomm Ltd. and PT Scan Nusantara in all-stock transactions.
Flexcomm, headquartered in Shenzhen, China, designs and manufactures network securities devices, including wireless routers and modems. Jakarta, Indonesia-based PT Scan provides network security services to commercial banks and government agencies. Flexcomm owns an 85 percent stake in PT Scan.
The Flexcomm purchase allows Axesstel to expand its product offerings into more network communication and security devices. The deal for PT Scan brings the buyer into the network security management space.
San Diego-based Axesstel provides wireless voice, broadband and other telecommunications services. The company is on Mergers & Acquisitions Distressed Company Watch List because its accountant raised substantial doubt about its ability to continue as a going concern, or without the threat of liquidation. In the company's latest quarterly statement, filed with the U.S. Securities and Exchange Commission on November 19, it says that it functions primarily through the use of loans for working capital, and that it will need additional funds to stay in business, which it hasn't secured. The company paid for Flexcomm and PT Scan in stock, so it did not need to use cash.