A Closer Look at Surge Holdings’ Newly Acquired ECS Prepaid Wireless Business and Software Platform

A Closer Look at Surge Holdings’ Newly Acquired ECS Prepaid Wireless Business and Software Platform

Surge Holdings Inc. (OTCQB: SURG) is a retail supply chain FinTech company utilizing blockchain technology to reach a consumer base that has been overlooked until now. Surge provides a virtual distribution hub for independent convenience stores, bodegas and tiendas. The company also offers telecom services for low income customers, and through its SurgePays™ Network provides financial services to underbanked individuals and retailers they frequent. Surge leverages this network for its own telecom and prepaid debit card products as well as creating a distribution pipeline for other products looking to sell into this network of retailers. Surge caters to underbanked and 51% of the US population that is credit challenged with sub-prime credit or credit invisible. The underbanked are consumers where no one in a household has a checking or savings account or where a household has a bank account but goes outside of the bank for financial services such as money orders, check cashing, payday loans and more. This is an underserved and massive audience for Surge to provide a range of services to.

Advancing its plan to increase revenues through its SurgePays Network, Surge acquired GBT Technologies’ (OTC: GTCH) ECS Prepaid business, Electronic Check Services business, and the Central State Services business – collectively, “ECS.” The ECS acquisition adds over 9,800 new retail locations, $48.7 million in additional annualized revenue, and 165 ISO salespeople to the Surge universe and is a major catalyst for near term growth.

Through its proprietary FinTech software platform, ECS is a leading provider of prepaid wireless load and top-ups, check cashing and wireless SIM activation to convenience stores and bodegas (wine cellars) nationwide. Founded in 2008, ECS processes nearly 20,000 transactions on a daily basis and works with a network of nearly 10,000 locations throughout the United States. Its business model includes prepaid wireless services, wireless SIM activation, and check cashing services.

Asset Purchase Represents Major Milestone, Long-term Growth Advantage

For market watchers, acquisition of ECS means that Surge has added to its network thousands of new retail locations to which it can cross-market its products. Surge chairman and CEO Brian Cox noted that ECS’ existing operations and business relationships also provide the opportunity to quickly and easily increase business.

“The real value here is the 9,800 convenience stores and the 165 salespeople that service those stores… relationships create the sales and then the sales, if your model is proper and you’re executing, create the profit,” he stated.

Surge will integrate SurgePays Network with the ECS software platform to offer third-party and wholesale offerings, as well as SurgePhone Wireless and SIM starter kits, and prepaid debit cards. One of the biggest benefits to this acquisition is the fact that Surge is keeping ECS’ staff to maintain and run the business.

According to Cox, this team is comprised of highly experienced professionals capable of supporting Surge’s goal to rapidly and exponentially scale-up the ECS network of retailers. Having the uniquely qualified executives, programmers and staff on board also means that Cox can focus on planning for the overall future of investments in Surge without needing to micromanage or maintain active involvement in the day-to-day dealings of the wireless division.

This acquisition is exciting for Surge because it promises a unique opportunity for massive growth that’s scalable and accomplished in a short amount of time. The team of upper to middle management across the country and in Central America, “… they’re all very hard workers, they all have a vested interest in what we’re doing at Surge, they believe in the leadership team… and they also believe in themselves. They’re fierce defenders of our company… we definitely have a good team and a management team that’s built to scale,” said Cox.

This is a large acquisition that projects massive growth in a short period of time.

About the Author

Stuart Smith is the CEO and Founder of SmallCapVoice.com. SmallCapVoice.com. is a recognized corporate investor relations firm, with clients nationwide, known for its ability to help emerging growth companies build a following among retail and institutional investors. SmallCapVoice.com utilizes its stock newsletter to feature its daily stock picks, audio interviews, as well as its clients’ financial news releases. SmallCapVoice.com also offers individual investors all the tools they need to make informed decisions about the stocks they are interested in. Tools like stock charts, stock alerts, and Company Information Sheets can assist with investing in stocks that are traded on the OTC BB and Pink Sheets. To learn more about SmallCapVoice.com and their services, please visit https://www.smallcapvoice.com/small-cap-stock-otc-investor-relations-financial-public-relations/

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