Coyote to Buy INET Systems in $4-Million Deal

Coyote Network Systems Inc. in Westlake Village announced it will acquire privately held Interactive Network Systems Inc., an international long-distance service provider, for $4 million in cash and stock.

Based in Los Angeles, Interactive Network Systems, known as INET, has more than 17,000 customers. With 1997 income of $6 million, it has doubled its revenues in each of the last three years.

The companies expect the transaction to close this month.

INET’s strength has been marketing to groups in the U.S. interested in calling France and Japan. The company plans to expand its focus to additional organizations.

“The planned acquisition of INET is in keeping with our strategic plan to build a core set of communication companies that provide both the equipment and network services to enable and deliver voice, data, and video solutions to our customers,” said James J. Fiedler, Coyote’s chairman and chief executive officer.

Coyote recently announced the acquisition of American Gateway Telecommunications Inc., which provides wholesale international long-distance services primarily to Central America, South America and Eastern Europe. Based in Houston, American Gateway currently has contracts for more than 31 million minutes monthly to 11 countries. When fully used, those minutes would equate to monthly revenues of more than $7 million.

Coyote Network Systems, through its subsidiaries, provides telecommunication switching systems and international and domestic long-distance services.