Geotek Communications Inc. announced its plans to restructure corporate assets and management structure to focus resources on its operations in the United States.
Geotek said it has reached agreements to sell its European analog assets to Montreal-based Telesystem International Wireless Inc. for approximately $85 million in cash. The European network businesses are National Band Three Ltd., an analog network in the United Kingdom, and a 50-percent stake in Terrafon Bundelfunk GmbH & Co. KG, a similar network in Germany.
To streamline management, Geotek has initiated a company-wide cost reduction program and is redrawing functional boundaries to improve efficiency, the company said.
“The sale of our analog operations in Europe and our recent sale of Bogen Communications International provides us a total of approximately $103.5 million in additional capital without dilution,” said Yaron Eitan, Geotek chief executive officer.
