Nocom to streamline operations through sale of Services business area
Nocom is focusing on software development and distribution and has decided to sell the two companies in its Services business area, Nocom Networks and UNC Systems, to Phonera. The total purchase price of SEK 9 million will be paid in cash.
Nocom Networks and UNC Systems offer communication solutions in the form of broadband access, IP telephony and web services, and account for three percent of the Nocom Group’s aggregate sales. In the past year, small players like Nocom Networks and UNC have experienced a tough market with declining demand.
Together the two companies have 11 employees and reported sales of SEK 18 billion during January-September 2006, with an operating loss for the period. The sale was made for a total purchase price of SEK 9 million and will result in a charge of approximately SEK 3 million against fourth quarter earnings. The companies will be taken over by Phonera on December 4, 2006.
“The sale of these non-core activities will enable us to concentrate on our growth areas, where IAR Systems and Northern are playing an increasingly important role in the Group. We will continue to step up investments aimed at accelerating growth in the software area,” says Stefan Ström, CEO of Nocom.
“Phonera’s strategy is to grow by expanding our offering of services to existing customers and by gaining access to new customers and expertise through acquisitions. This acquisition meets all of those criteria”, says Henric Wiklund, Vice President of Phonera.
For additional information contact:
Stefan Ström President and CEO, Nocom AB (publ)
mobile: +46 708 65 10 68
Henric Wiklund Vice President, Phonera AB (publ)
Mobile: +46 701 82 00 00