LINCOLNSHIRE, Ill.-Motient Corp. said it is selling its legacy wireless data business, including its narrowband terrestrial DataTac wireless data network and its iMotient Solutions platform, to Geologic Solutions Inc.
Geologic is a subsidiary of Logo Acquisition Corp. Logo agreed to assume most of the post-closing liabilities related to Motient’s business. Under the Agreement, Logo will pay Motient the sum of $1 in cash.
Motient said the transaction will save up to $18 million in total future operating costs.
“Over the past few years, we have been refocusing our business strategy and corporate resources toward our interest in the satellite communications companies,” said Christopher Downie, chief operating officer of Motient. “By effectively transferring our legacy assets out of the company, we believe that Motient will be better positioned to focus solely on assisting TerreStar and MSV (to) execute on their respective strategic plans.”
Motient said TerreStar does not generate any revenue, and likely won’t do so until 2008.
As of March 2006, Motient counted 72,583 devices on its network. During the quarter ended March 2006, Motient earned $2 million in revenues from its network, down from $5 million in the year-ago quarter.
