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Final agreement between Birdstep Technology ASA and Aptilo AB signed and completed.

Aptilo Networks and Birdstep Technology have entered into a final agreement to combine their IP Zone businesses in Aptilo Networks AB.

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.

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 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.

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