Nera to sell its DVB-RCS business to STM GROUP, INC., USA
(Oslo, 3rd April, 2006) Nera and STM Group, USA (STM) have entered into an agreement to transfer Nera’s DVB-RCS business to STM. The transfer price is USD 2.5 million, about NOK 16 million. Nera will disclose the detailed financial effects of the transaction as part of the Q1-2006 reporting.
The transfer comprises the DVB-RCS products – i.e. the Nera Satlink series – and all intellectual property rights attributed to these products. In addition, inventory, supply agreements, customer portfolio and key personnel will be transferred to STM. STM plans to continue the business in Norway based on the acquired resources.
“We are satisfied with this agreement with STM”, says the Chief Executive Officer of Nera ASA, Mr. Bjørn Olafsson. “STM has, as a profitable and long-term player within the VSAT segment, the capability to further develop this business. Despite having a good product, Nera has experienced challenges in reaching a sustainable business volume within the VSAT mass market. STM has the experience, sales network and customer portfolio that can lift Nera’s DVB-RCS business further”, he says.
STM is a privately-owned, U.S. company based in Irvine, California active in the VSAT field for more than 20 years. The company’s principal founder and CEO, Emil Youssefzadeh, said “STM has built a successful global business by relying on hardworking employees in many countries serving all our highly valued customers. We consider DVB-RCS and Nera’s leading technology created by very talented staff as a foundation for future product innovation that will serve our current and new customers.” The company and its subsidiaries have offices and presence throughout the world and is a leading supplier of products and services to many telecommunication companies and users of private networks.
More information on STM can be found at: www.stmi.com
For more information, please contact:
EVP Corporate Communications Helge Skaar, +47 5522 5820 (work), +47 9014 2040 (mobile), or email: hsk@nera.no.
Investor Relations Manager Lars Jørgen Ytrehus, +47 5522 5441 (work), +47 9057 2931 (mobile), or email: ly@nera.no.