STI Takes Over CVT

I reported about a month back in my post "Rumor - STI in Talks with CVT Prepaid" about the rumored take over by STI of CVT Prepaid... well now it is officially not a rumor anymore!

Inside sources at those companies tell me that the "merger/takeover" is now complete and things are underway in merging the two companies together. For now it looks like STI will continue to utilize the CVT brand name at least for a little while and work to transition over all new pin generating over to the STI platform.

Operationally everything is still intact at CVT and no formal plans or layoffs have been announced about the merger, but I don't doubt that the CVT platform will be phased out eventually, since maintaining two independent calling card platforms makes no financial sense.

I'm sure STI will find some valuable resources in CVT (personnel, technology, hardware) and incorporate those into their operations but overall I think CVT as we know it will be gone by the end of the year. They had a good run but the industry has shrunk too much to sustain all of these companies. I'm also sure it won't be the last consolidation we see in this business this year!