iPass Sells Unity Business Unit to Tolt Solutions for $28.2 Million
Divestiture allows iPass to focus on its growing mobile Wi-Fi business
REDWOOD SHORES, CA. JULY 1, 2014—iPass Inc. (NASDAQ: IPAS), the global Wi-Fi roaming leader, announced today it has completed the successful sale of its Unity Managed Network Services business unit for $28.2 million to Tolt Solutions. This marks the culmination of a competitive process initiated in February 2014, providing increased value to iPass shareholders and a natural transition for Unity customers.
“We are pleased with the process and the outcome and we believe Tolt makes an ideal home for the Unity business and its customers,” said Evan Kaplan, President and CEO of iPass. “The sale of Unity enables us to focus exclusively on our Wi-Fi Open Mobile business. With annual Open Mobile revenue growth of 77% in 2013, iPass is well positioned to leverage our unique assets and strengthened balance sheet to drive consistent growth in the expanding market for global Wi-Fi.”
Connectivity has become central to people’s personal and business lives as evidenced by the dramatic rise in data consumption. The vast majority of that consumption is on Wi-Fi networks driven by rapid growth in public Wi-Fi deployments and the widespread availability of Wi-Fi on connected devices. The iPass Business Traveler 2.0 service and Open Mobile offerings are positioned to help people easily and cost effectively get connected on Wi-Fi. Growing from several thousand users a few years ago, today the service is used by over 1.6 million people a year to get connected in airports, airplanes, trains, hotels, and public venues around the globe.
This transaction marks a new stage for iPass. With a singular focus on Wi-Fi mobility, the company plans to further expand its market leading 15 million hotspot Wi-Fi network, enhance its industry leading global authentication fabric, and introduce significant improvements to its iOS, Android and Windows user experiences. In addition, the company will continue to expand its customer base and build deeper relationships with its over 700 current customers including enterprises like Cisco, Oracle, SAP and Nestle as well as service providers like Deutsche Telekom, Orange and Telstra.
Guidance Update. iPass is reaffirming its guidance for second quarter 2014 results for the entire Company, including Unity, as described in its first quarter press release of May 7, 2014. iPass intends to discuss this transaction in detail on its upcoming second quarter 2014 conference call in early August.
About iPass Inc.
iPass enables business travelers to stay connected by providing them with cost-effective and convenient global Wi-Fi access across smartphones, tablets and laptops. Founded in 1996, iPass (NASDAQ: IPAS) is the world’s largest commercialWi-Fi network, covering over 120 countries and territories and selling to over 700 large corporations and telecom service providers around the world. Through its cloud-based delivery model, iPass connects business travelers to over 15 million commercial grade hotspots in airports, airplanes, hotels and public areas along with access to millions of additional community hotspots. With the growing need for fast, high bandwidth connectivity, iPass lets business travelers stay close to what matters most while on the road including access to video, unified communications, web conferencing and other cloud based apps.
For more information, please visitwww.iPass.comand the iPass blog,Smarter Connections.
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About Tolt Solutions
Tolt Solutions is the leading retail-focused IT expert, delivering innovative technology solutions and managed services for your business both today and tomorrow. Celebrating over 40 years of innovation, we identify, define, deploy, and manage IT solutions that drive increased sales, lowers costs, and improve overall customer satisfaction. Our comprehensive service offering and national footprint provides customers with a single point-of-contact for their in-store technology needs. For more information, please visit our website www.toltsolutions.com.
Cautionary Information About Forward-Looking Statements
The statements in this press release regarding the benefits that iPass expects to receive from the sale of Unity, including its belief that its ability to focus its attention on its Wi-Fi Open Mobile business will help maximize value creation, that it will seek to exploit its competitive advantages and balance sheet to derive growth in the expanding market for global Wi-Fi, that it will be able to focus on building deeper relationships with its over 700 enterprise customers as well as expanding both its OME and OMX customer bases and its reiteration of its second quarter guidance, are forward-looking statements. Actual results may differ materially from the expectations contained in these statements due to a number of risks and uncertainties, including the following: the risk that its focus on the Wi-Fi Open Mobile business will not achieve the results iPass expects due to unforeseen reasons; the risk that demand for Wi-Fi Open Mobile services does not grow as iPass expects; the risk that strong competition in the market for Wi-Fi services could reduce demand for iPass’ services; and the fact that iPass’ second quarter has just ended and iPass has not yet closed its financial accounting records for the quarter, and so actual results may differ from those expected. Detailed information about these and other risk factors that could potentially affect iPass’ business, financial condition and results of operations are included in iPass’ Current Report on Form 10-Q filed with the SEC on May 8, 2014, and available at the SEC’s Web site at www.sec.gov and the company’s website at http://investor.ipass.com. iPass undertakes no responsibility to update the information in this press release if any forward-looking statement later turns out to be an inaccurate prediction of the actual results.
iPass Media Contacts:
Tel: +1 650 232 4318
iPass Investor Contacts:
Tel: +1 415 217 2632