ATLANTA-EMS Technologies Inc. has agreed to sell its floundering Satellite Networks division to Advantech Advanced Microwave Technologies Inc. of Montreal, Canada.
Advantech manufactures satellite and terrestrial wireless communication equipment. EMS President and CEO Alfred Hansen said that Advantech would be better able to nurture SatNet by integrating the division with complementary products and technologies. EMS said in a statement that the company anticipates a fourth-quarter charge of $2.5 million on SatNet and that the company “may recognize additional losses through discontinued operations arising from the SatNet division’s operations during the fourth quarter.”
SatNet has had delays in orders, leading to continuing losses and a need for more cash, EMS reported.
“While I believe its operations have a bright long-term future, it remains a small startup whose order stream is difficult to predict,” Hansen said.
The companies are seeking to complete the transaction quickly, but no expected close date or terms were released.
