VICTORIA – (January 9, 2017) – Vecima Networks Inc. (TSX:VCM), is pleased to announce that it has entered into a definitive agreement to sell the remaining assets of its YourLink business based in Saskatchewan to Xplornet Communications Inc.
Proceeds from the all-cash deal are expected to be $28.75 million subject to normal closing adjustments. The asset transaction is contemplated in two closings, the first of which is scheduled to occur by the end of this week for $20 million. The final closing of $8.75 million is expected to occur before the end of Q2 calendar 2017. The transaction is subject to customary closing conditions including the receipt of all requisite regulatory approvals, including the transfer of radio spectrum licenses.
“We are pleased that we’ve been able to reach a mutually beneficial deal to sell YourLink to a highly respected company in the industry,” says Sumit Kumar, President & CEO of Vecima Networks Inc. “Our strategic priority over the past 5 years has been to monetize non-core assets and focus on our core technology business. This sale marks the culmination of a multi-year effort where we have successfully created additional shareholder value through the sale of excess real estate, radio spectrum and, in the last 6 months, both BC Cable and this transaction. We are confident that our vision to extend the reach of broadband to more people in Saskatchewan will now be pursued by a highly focused national broadband service provider that is dedicated to building a stronger, more connected digital Canada.”
About Vecima Networks
Vecima Networks Inc. (TSX:VCM) is a globally recognized leader in creating breakthrough technology solutions that empower network service providers to connect people and enterprises to information and entertainment worldwide. Vecima products for the cable industry allow service providers a cost-effective Last Mile Solution® for both video and broadband access, especially in the demanding business services market segment. Vecima also provides fleet managers the key information and analytics they require to optimally manage their business under the Contigo, Nero Global Tracking, and FleetLynx brands. More information is available at our website at www.vecima.com.