Toronto-based DealNet Capital Corp. (CNSX:DLS) (OTC:GAIMF) has said that its recently acquired business process outsourcing (NYSE:BPO) subsidiary, OC Communications Group, has secured an early renewal and contract extension with a utility provider in Texas.
OC Communications said it will continue to manage all aspects of sales and customer service for the Texas-based utility service provider, including account management, payments, escalations, acquisitions and retention.
With the original contract set to expire in February 2013, the US utility provider has contracted the BPO segment to deliver services over the next two years, running through November 2014.
Services will be delivered out of the company's headquarters in Toronto as well as the new facility in Reno, Nevada.
Merchant banking company DealNet Capital, which was previously a company called GameCorp, continues to rebrand and restructure its business from the gaming industry to heating ventilation and air conditioning (HVAC) financing and services, water heater rentals and the business process outsourcing (BPO) business.
The business model of the company includes the establishment of a BPO segment for "sustainable and predictable revenue generation", which will then be leveraged to enter the North American HVAC financing and servicing market, as well as the water heater rental business, noted Ubika Research analyst Vikas Ranjan recently.
DealNet said its BPO division has been servicing the needs of utility customers in the United States for more than six years, and has established "significant credibility in the highly competitive industry".
The BPO segment is intended to provide a "concrete base" for the company to establish its One Dealer business in the North American HVAC and water heater financing industry, by providing customer care services and automation technology.
The company, through One Dealer, plans to bring together more than 80,000 small and intermediate-sized dealers in the North American HVAC and water heater rental industry under one umbrella.
One Dealer is expected to help these dealers reach out to end customers through OC Communications, and at the same time "authorize and encourage them to sell Dealnet's finance products and services." The company plans to position itself between the dealers and the end customers, earning profit from both.
"We are pleased to announce the two year contract renewal and the opportunity to provide extended services out of our new Reno, Nevada location," said president of DealNet, Bob Cariglia.
"This renewal is a testament to the value we provide our customers and will serve to strengthen the BPO division and fuel the growth of DealNet Capital."
Earlier this month, DealNet announced a non-brokered offering of convertible unsecured debentures, raising up to $1.5 million in proceeds. The new funds will be used to implement management's business plan, which includes business development, corporate marketing initiatives, project specific infrastructure and general working capital purposes.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.