Struggling Glenayre Messaging bought by IP Unity
Glenayre's messaging division is set to be bought by applications server provider IP Unity for $25 million in cash.
Despite a better year for Glenayre's wireless messaging sales in 2005, the company and it messaging unit have recorded losses in each of the three reported quarters in 2006.
The messaging division showed a cumulative nine month operating loss of $3.2 million for the quarter ended September 2006, according to Glenayre's unaudited accounts, and operating loss of $7.8 million for the nine month period, on sales of $45.1 million. Glenayre as a whole lost $9.2 million in the nine months to September 30 2006.
The sale, for $25 million, of the messaging business represents the final step in Glenayre's strategy to separate its entertainment and telecoms businesses. Glenayre intends to rename itself EDC, standing for Entertainment Distribution Company.
The merged busines with IP Unity will be known as IP Unity Glenayre.
Glenayre's stock price was up 13.8% at $2.61, against a 52 week high of $6.02.
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