Satellite solutions provider Norsat International has pulled its acquisition of Irish WiMAX specialist Bluemoon 4G.
Under the terms of the transaction, originally signed in April 2009, Norsat bought 100% of privately-held Bluemoon’s common stock for…
Satellite solutions provider Norsat International has pulled its acquisition of Irish WiMAX specialist Bluemoon 4G.
Under the terms of the transaction, originally signed in April 2009, Norsat bought 100% of privately-held Bluemoon’s common stock for approximately five million of its own shares. Prior to the final completion of the deal, these shares were held in an escrow account. Norsat has now stated that following the expiration and subsequent non-renewal of its contract with Bluemoon, these shares have been returned to the company and the transaction will no longer take place.
Norsat did not give a reason as to why it had decided to pull the plug on the deal, stating only, ‘While this contract has dissolved, it has been very fruitful in creating many new relationships for Norsat increasing its prospects as a solutions provider within the rapidly expanding wireless broadband market.’
The company’s president and CEO Dr Amiee Chan added: “We continue to remain focused within the wireless broadband markets, where there are many significant global niche markets for Norsat to profit from…Concurrently, we are pleased to return a sizable block of stock to the treasury, which will be immediately accretive to shareholders.”
The Bluemoon acquisition was intended to accelerate Norsat’s strategy of expanding its wireless broadband services into the developing world. Bluemoon’s flagship product, WiMAX-in-a-Box, was designed for rapid deployment in regions with minimal communications infrastructure.
