Payless Has New Pact

SANTA ANA — Payless Communications Inc., a long distance services supplier with $5 million in annual sales, has signed a letter of intent to be acquired by a Connecticut firm for cash and stock valued at $10 million.

In a press release Friday, DCI Telecommunications Inc. said the deal is incentive-based, with the stock tied to earnings per share and the cash primarily for capital expenditures and operating capital.

DCI Telecommunications supplies telephone services, prepaid telephone cards and Internet products.