Birdstep Technology ASA sells Birdstep Technology Oy (Secure Mobility) in order to focus fully on its core growth areas
Birdstep Technology ASA (OSE: BIRD) and Birdstep Technology Oy (Secure Mobility), a wholly owned subsidiary in Finland, announced today that they have signed a share purchase agreement where Secure Mobility is to be sold to Elektrobit Technologies Ltd (EB).
“Birdstep Technology ASA will focus entirely on our major area of growth, Smart Mobile Data services, offering advanced solutions for Mobile Network Operators, Cable Network Operators and device manufacturers. With this transaction Birdstep is provided greater opportunity and stronger position in a rapidly growing market ”, says Lonnie Schilling, CEO of Birdstep Technology ASA.
Tom Nyman, Chairman of the Board, added “We’re very pleased that Birdstep has completed the sale of Secure Mobility. Even though the company has strived to find synergies for Secure Mobility and Smart Mobile Data the strategic direction for the different business areas has further diverged. With this transaction Birdstep provides opportunity and foundation for both to focus, grow and to create stronger positions in the market”
EB develops advanced technology and transforms it into enriching end user experiences. The company specializes in demanding embedded software and hardware solutions for the automotive industry and wireless technologies. Secure Mobility will move into an area of business within EB’s Wireless Business Segment that will allow them to focus and grow through EB’s presence in the market, their customers, their economic position and a close alignment with their strategic vision.
SUMMARY OF TRANSACTIONS:
The purchase price for Secure Mobility business segment is EUR 1.9 million in cash on the closing date and before accounting for transaction costs. The purchase price consist of Enterprise Value of EUR 2 million less Net Debt of EUR 0.1 million. The transaction was signed and closed on January 2nd, 2015. The purchase price is net of cash and cash equivalents. Thirty days post-closing date, and once the 2014 audited financials are available, adjustments to the purchase price will be made by considering any net working capital (NWC) or net debts adjustments.
Birdstep Technology ASA will issue an Information Document regarding this transaction, cf. the Continuing Obligations section 3.5 of stock exchange listed companies.
ABOUT ELEKTROBIT CORPORATION (EB)
EB creates advanced technology and turns it into enriching end-user experiences. EB is specialized in demanding embedded software and hardware solutions for wireless and automotive industries. The net sales in 2013 totaled EUR 199.3 million and operating profit was EUR 8.1 million. Elektrobit Corporation is listed on NASDAQ OMX Helsinki. www.elektrobit.com
ABOUT BIRDSTEP TECHNOLOGY
Birdstep Technology is a leading provider of Smart Mobile Data and Secure Mobility for operators, enterprises and governmental organizations. Drawing on extensive experience of successful customer projects and cooperation with operators, enterprise customers and OEM partners around the world, Birdstep delivers industry-leading solutions for wireless connectivity and service management. Birdstep is listed on Oslo Stock Exchange. www.birdstep.com
FOR FURTHER INFORMATION PLEASE CONTACT:
Chief Executive Officer
+46 8 627 91 40
Acting Chief Financial Officer
+46 8 627 91 40
This information is subject to the disclosure requirements according to §5-12 vphl (Norwegian Securities Trading Act).