Glenayre to sell messaging business, focus on entertainment

Shares of Glenayre Technologies Inc. climbed after the company said it will sell its messaging business for $25 million in cash to IP Unity.
The move follows September’s announcement by Glenayre that it was looking to separate its telecom and entertainment businesses. The company hopes to focus on its Entertainment Distribution Co. L.L.C. division, which supplies CDs and DVDs for Universal Music.
Glenayre’s messaging business has struggled in recent years, operating in the red each of the last three quarters and suffering an operating loss of nearly $8 million over the nine-month span.
“The industry is at a stage when media-rich applications are going to drive revenue and customer loyalty for our customers,” said IP Unity CEO Arun Sobti. “With the core infrastructure posed for convergence, the combined company will have the optimal solutions for our combined customer base. We will have all the compelling competencies including scale, experience, partners, channels and innovation to support the largest and most demanding deployments worldwide.”
Shares of the company climbed more than 9 percent to $2.51 Thursday afternoon following the announcement and continued to rise in after-hours activity; the stock lost more than 3 percent Friday morning to settle at $2.52.