Coyote Network Systems to Purchase Group Long Distance

Coyote Network Systems Inc. in Westlake Village said it plans to buy Group Long Distance Inc., a reseller of long-distance services to more than 15,000 small and medium-sized businesses and residential customers.

Group Long Distance, based in Fort Lauderdale, Fla., also has local exchange carrier licenses in more than 40 states.

“We will now have the advantage of offering local dial tone and class services over our e-commerce network,” said James R. McCullough, Coyote chief executive. “We are building a truly scalable e-commerce platform right to the desktop based off of the telephone.”

Upon completion of the merger, Group Long Distance operations would be merged into Coyote’s international long-distance subsidiary, INET Interactive Network System Inc. INET has approximately 20,000 small business and residential customers.

Group Long Distance shareholders would receive approximately $5.6 million in shares of Coyote Network Systems common stock, in exchange for 100% of the equity in Group Long Distance, according to the deal’s letter of intent.

The merger is expected to be completed by Sept. 30.