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UI Subsidiary Acquires Calling-Card Firm
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Business New Haven
5/14/2001
By: BNH
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HAMDEN - American Payment Systems (APS), a walk-in payment agent network, has acquired a majority share of the Chicago-based CellCards, LLC, a marketer of prepaid telecommunication products in check-cashing locations nationwide. Under the terms of the agreement APS will acquire a controlling interest in CellCards and cross-market CellCards' financial services and prepaid products to current and prospective customers.
Owned by a group of check-cashing retailers, CellCards has a national distribution network of some 2,000 locations, which distribute their prepaid telecommunication products. The company sells prepaid cellular phones and air time for major carriers including AT&T, CellularOne, Cingular Wireless, PrimeCo, Voice Stream and Verizon.
APS' acquisition in the prepaid telephone industry supports the company's overall strategy of becoming a distribution network for financial services and related products used by “unbanked” or “underbanked” households. “Our market research indicates that individuals who pay their bills in person have a high likelihood of buying prepaid telecommunication products,” said APS President Paul Rocheleau. “Nearly 80 percent of our bill payment agents offer some kind of phone card. These products fit the needs of customers who are on tight budgets and need to control their phone usage and expenses.''
APS is a non-regulated business unit of UIL Holdings Corp. (NYSE: UIL), the New Haven parent of the United Illuminating Co.
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