Recently, Sycamore Networks (News - Alert) announced it was selling substantially all of the assets of its Intelligent Bandwidth Management business to a subsidiary of Marlin Equity Partners. According to the agreement, Marlin Equity Partners will pay $18.75 million for this deal.
The agreement is subject to certain adjustments and the assumption by Marlin of certain liabilities.
Sycamore's Intelligent Bandwidth Management provides a unique answer to the service issues created by fast mobile data growth in the Radio Access Network (RAN). The Sycamore IQstream solution decreases congestion in the access network caused by rising demand for Internet video and other rich media applications.
The solution achieves this with the help of Adaptive Content Optimization technology and advanced learning algorithms.
The company expects this asset sale to be completed by 2013.
Obviously, the sale is subject to stockholder approval and other customary closing conditions, the company has stated. The agreement allows Martin to take over all of the assets of the Sycamore's Intelligent Bandwidth Management product and service business.
“After careful consideration of the Company’s strategic alternatives, we believe these actions are in the best interests of Sycamore’s stockholders, as well as its customers and employees,” said Daniel E. Smith, president and chief executive officer, Sycamore Networks. “We are pleased with Marlin’s decision to acquire our Intelligent Bandwidth Management business operations, which will provide for continued support of our global customer base.”
A few days ago, the company reported a net loss for the fourth quarter ending July 31, 2012. The company had stated that the net loss was $2.52 million for this period. Compared to a net loss of $3.62 million, or $0.13 loss per share, this translated into $0.09 loss per share for the fourth quarter ending July 31, 2011.
Edited by Braden Becker