Elephant Talk Communications Corp. (AMEX:ETAK) signed an acquisition agreement to acquire all assets of Telnicity, LLC for $0.99 million in stock on January 9, 2013. Under the terms of the deal, Elephant Talk Communications will issue 1 million shares to acquire assets of Telnicity. The shares will be subject to a lock-up agreement restricting sale or disposition of the shares for 18 months. The terms of the acquisition agreement also provides for a bonus arrangement applicable when revenue minus cost of sales is in excess of $1 per customer per month and payable once the cash flow from the Telnicity business is sufficient to cover the payments. Post Closing, Dane Gasio will become President of Elephant Talk North America and will report directly to Elephant Talk Chief Executive Officer Steven van der Velden. Telnicity's 6 full-time equivalent employees will remain in their current positions.

The deal is subject to certain closing conditions. The Boards of Directors of Elephant Talk Communications, Corp. and controlling shareholders of Telnicity, LLC have approved this transaction. The transaction is expected to close on or before March 8, 2013. Peter Salkowski of The Blueshirt Group acted as investor relations advisor to Elephant Talk Communications. Fishburn Hedges acted as public relations advisor in the deal.