Public company Sycamore Networks has now officially become privately held Sycamore Network Solutions Inc. after the company’s stockholders approved the sale of its Intelligent Bandwidth Management Business to a portfolio company of Marlin Equity Partners. Approval of the deal, announced last October (see “Sycamore Networks shutting down, sells optical business for $18.75M”), came during a special meeting of shareholders January 31.
Marlin Equity partners agreed to pay $18.75 million in cash (subject to a working capital adjustment) for the assets and assume “certain related liabilities.” John Scully, previously Sycamore’s vice president of worldwide sales and support, will lead the new company as president and chief executive officer. The Intelligent Bandwidth Management Business primarily focused on the sale of large-scale optical switches.
“Sycamore’s carrier-class networking solutions form the critical foundation for many of the world’s leading communications networks, and we believe the company is well positioned to deliver enhanced value to its global customers as it moves forward,” said Pat DiPietro, operating partner at Marlin. “We are pleased to appoint John to the role of president and CEO, and we are committed to providing the strategic guidance and financial resources necessary to ensure the company’s success as it enters a new phase of growth and innovation.”
“I am extremely honored to lead a dedicated organization with a proven track record of technology innovation and an unwavering commitment to excellence in customer service and support,” added Scully. “We are very excited about the opportunities we see ahead of us, and look forward to strengthening our relationships with current and prospective customers as we expand the features and capabilities of our solutions portfolio.”
One potential avenue of such an expansion could come when Marlin Equity Partners closes another deal, the acquisition of the optical network systems business of Nokia Siemens Networks (see “Nokia Siemens Networks to sell optical network hardware business to Marlin Equity Partners”).“We are making a major commitment to this sector, and have significant capital under management that we intend to use as a catalyst for consolidation,” said Nick Kaiser, a co-founder and partner at Marlin Equity Partners, via a press release when the pending acquisition was announced.
Sycamore Networks Solutions Vice President of Corporate Marketing Scott Larson told Lightwave he could not comment on this possibility, citing that it is Marlin’s policy to decline to discuss deals that have not yet completed.
Meanwhile, what’s left of the original Sycamore Networks will proceed to liquidate the rest of its assets and dissolve the company. The timing of the dissolution is not yet certain, Sycamore management said.
For more information on optical switches and suppliers, visit the Lightwave Buyer’s Guide.
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