WAVO Corporation announced Thursday that it has completed the transaction to sell its satellite delivery division to privately held Cidera, Inc. for $14.5 million.
Terms of the deal include the sale of WAVO’s FM and satellite network assets for $12 million in cash, $2.5 million in Cidera common stock and the assumption of certain liabilities. In addition, Cidera has entered into a $1.2 million, renewable service agreement with WAVO to utilize WAVO’s MediaXpress service to provide Internet-based delivery for select Cidera customers.
“We’re delighted and are looking forward to helping Cidera support their rapidly expanding customer base,” said Michael Coffin, President and COO of WAVO. “Our service agreement with Cidera represents approximately a 40% increase in our MediaXpress revenue base.” 43 of WAVO’s Salt Lake City-based employees will transfer to Cidera at the time of closing. “The acquisition of this division will enable Cidera to provide our customers with enhanced delivery options and services,” said Richard J. Hanna, Cidera President and Chief Executive Officer.
