SUNNYVALE, Calif.-California Microwave Inc. sold its services division for $8 million in cash to Houston-based Telscape International Inc.
The transaction is subject to post-closing adjustments for changes in net assets since April 25.
“Even though our services division is a profitable operation, its business does not meet California Microwave’s EVA [economic value-added] requirements and its products and services do not fit with our new strategic focus on high-growth, commercial wireless markets,” said Frederick D. Lawrence, chairman and chief executive officer of the company.
Proceeds from the divestiture are earmarked for investment in the wireless broadband access products and solutions markets and the company’s stock buyback program, Lawrence said.
