2004-07-11
Final agreement with Aptilo AB signed and completed
Oslo/Stockholm July 12th 2004:The global market for WLAN installations are expected to show continued strong growth in the coming years. The new combined company has a strong standing in the market and is well positioned to capture market share.
Aptilo Networks and Birdstep Technology have entered into a final agreement to combine their IP Zone businesses in Aptilo Networks AB. The combined company will be a leading European wireless LAN (WLAN) software company and will operate as Aptilo Networks with Birdstep Technology as the leading shareholder. All transactions are completed.
Aptilo Networks and Birdstep have the same architectural platform; hence the customers of the two companies can expect better and broader product capabilities. Although the companies share the same business philosophy, their customer bases do not overlap, and the outcome will be a stronger offering to the Enterprise, Public Hotspots and general Broadband markets.
The final agreement is based on market value of SEK 150 million of Aptilo Networks AB, and SEK 55 million of Birdstep\'s IP Zone business. After integration and contribution of SEK 25 million in cash, Birdstep will hold 33.3% of the combined company which is valued at SEK 240 million (€25,4 million). The reason for the adjustment in relative values, post Due Diligence and Heads of Agreement, are stronger findings about Aptilo\'s market position through HP and others, in combinations with the substantial order back log for the next 3 years.
Nordstjernan, Aptilo\'s former largest shareholder has together with Birdstep injected SEK 35 million. The combined company will have enhanced capabilities to accelerate future growth strategies for sales in Europe, Americas and Asia.
The combined company will have a significant installed base with customers like Vodafone, T-Mobile, Telecom Malaysia, Tele2 and Telenor, and strong partners such as HP, Intel, Nortel and Capgemini.
The transaction will generate a capital gain of approximately NOK 42 million for Birdstep Technology ASA, whereof two thirds (NOK 28 million) will be booked in Q3. The remaining one third will be booked as a part of the asset value of the 33.33% share Birdstep holds in Aptilo Networks AB following the transaction.
About Birdstep Technology
Birdstep Technology is traded on the Oslo Stock Exchange (OSE) under ticker \'BIRD\'. The company has headquarters in Oslo and Seattle in addition to offices in London, Cambridge, Frankfurt, Boston, San Francisco and Shanghai. Birdstep\'s small footprint, high performance database technologies combined with its wireless roaming and access software enables companies to build innovative solutions for embedded systems and the Mobile Internet. Birdstep makes your information accessible anytime, anywhere, on any device and on any infrastructure. Birdstep\'s global customers include 3Com (COMS), VERITAS (VRTS), Harman Becker Automotive Systems, HP (HPQ), Accenture (ACN), Telenor (TELN), PCTel (PCTI), Connect One and the National Stock Exchange of India. For more information, visit www.birdstep.com.
About Aptilo Networks
Aptilo Networks develops system solutions for PWLAN (Public Wireless LAN), also referred to as hotspots or Wi-Fi areas. The solution enables wireless Internet access at public venues and places such as hotels, coffee shops, airports and conference centers. Aptilo Networks\' solution is designed and developed to meet the needs of telecom operators, ISPs and other service providers providing professional, carrier-class access, and public WLAN services. The company is based in Stockholm, Sweden, with regional offices in Kuala Lumpur, Malaysia and Dallas, in Texas, USA. Aptilo systems are up and running in 30 countries on five continents.
Contact Information:
Jorgen Bredesen, CEO
Birdstep Technology ASA
+ 47 48252584
Hans Petter Hauge, CFO
Birdstep Technology ASA
+ 47 92426437
Torbjörn Wård, CEO
Aptilo Networks AB
+ 46 850898903
Ulf Stigberg, CFO
Aptilo Networks AB
+ 46 850898910