CSPi Announces Sale of Germany Operations
OREANDA-NEWS. June 28, 2018. CSPi (NASDAQ:CSPI), a provider of IT managed services, security solutions and packet capture products, today announced it has agreed to sell its Germany operations (CSPi GmbH, Technology Solutions) to European IT service provider and media conglomerate Reply (MTA, STAR: REY) for €10.0 million in cash, which is approximately $11.6 million at current exchange rates. Reply will acquire all of the outstanding stock of CSPi’s German subsidiary, which includes all of the assets and liabilities, including the pension obligation. The sale, which is expected to close during the fourth quarter of Fiscal Year 2018, is subject to various closing conditions, including, among others, the approval of the German Federal Cartel Office. CSPi will continue to operate its United Kingdom location to serve certain multinational clients.
“The divestiture of CSPi’s Germany operations and our increased cash position will enable us to focus time and resources on our higher-margin and greater-potential growth opportunities,” said Chief Executive Officer Victor Dellovo. “We are encouraged by the traction of our managed services business in the U.S. and will continue to invest and focus on our new ARIA™ Software Defined Security cybersecurity products and to capitalize on the proliferation of our wireless service business. This transaction is another positive step toward our future growth. We thank our employees in Germany for their contributions to CSPi.”
CSPi (NASDAQ:CSPI) maintains two distinct and dynamic divisions – the High Performance Products, including the Cybersecurity Center of Excellence, and Technology Solutions – with a shared vision for technology excellence. CSPi’s cybersecurity solutions protect an organization’s critical assets to minimize, or remove, the impact of the inevitable data breach. Our ARIA™ Software Defined Security (SDS) platform solves the complexities associated with securing devops environments, while our Myricom® nVoy Series appliances provide automated breach identification and notification, enabled by the 10G dropless packet capture inherent in our Myricom® ARC network adapters. CSPi’s Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and security services by partnering with best in class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24x365 proactive support.