Enablence Technologies Inc. (TSX VENTURE:ENA) has followed through on its search for strategic alternatives for its Systems Division. The company announced that it will sell its Trident7 line to Aurora Networks and its MAGNM FX product line to FX Support.
Aurora Networks will acquire the Trident7 Universal Access Platform assets for $5.1 million, which includes $2.75 million in cash and the assumption of certain liabilities and contingent liabilities (see "Aurora Networks buys Trident7 PON line from Enablence Technologies").
The MAGNM FX transaction involves divesting “certain assets” and transferring “certain warranty obligations” to FX Support, LLC. This deal, for which financial terms, if any, were not disclosed, is expected to close by September 15, 2011. The MAGNM FX is a multimedia aggregation node that Enablence brought aboard when it acquired Pannaway Technologies in 2008 -- the same year it acquired the Trident7 line by purchasing Wave7 Optics (see "Enablence to add Pannaway Technologies to FTTx Networks Division" and "Enablence climbs food chain with Wave7 Optics acquisition").
Enablence also announced that it would lay off approximately 40 employees, representing substantially all of its remaining staff in the US Systems business. A team of employees will remain to support ongoing customer obligations of the Systems business.
The company also says it “has continued to make progress” in its quest to divest its International Systems business located in Israel. Enablence expects the strategic alternatives process to be completed by September 30, 2011.
The company announced last April that it would seek strategic alternatives for its systems business, which was draining cash from the company's reserves (see "Enablence leaving FTTH systems market"). Divesting these assets will enable the company to focus on its more successful component and subsystem operations.