OTTAWA, April 17, 2017 /CNW/ - Wi-LAN Inc. ("WiLAN"
or the "Company") (TSX:WIN) (NASD:WILN) today announced that its
Board of Directors has approved a plan to transform its business
into a growth-oriented diversified holding company by acquiring
businesses that will operate alongside the Company's intellectual
property licensing business. As part of this transformation,
WiLAN will:
- Change its name to Quarterhill Inc. ("Quarterhill") on or about
June 1, 2017.
- Effective immediately, implement the following management
changes: Paul McCarten, Chairman of the Board of Directors
will become Independent Lead Director. James Skippen,
President & CEO, will become Executive Chairman. Shaun
McEwan, CFO, will become Interim CEO. Steve Thompson, VP
Finance will become Interim CFO. The Board of Directors has
begun the search for a full-time CEO.
Quarterhill's growth strategy will focus on acquiring technology
companies in the Industrial Internet of Things ("IIoT") segment
across multiple verticals. The acquisition strategy will
target companies with a broad range of products and services that
capture, analyze and interpret data, and that have strong financial
performance, excellent management teams, strong intellectual
property underpinnings and significant opportunities to develop
long-term recurring and growing revenue streams. The acquired
businesses will operate independently as subsidiaries of
Quarterhill. WiLAN will continue as a key subsidiary of
Quarterhill focusing on patent licensing.
"Over the past several years we have considered multiple options
for how to best leverage our capital to grow the business and
increase shareholder value," said James
Skippen, Executive Chairman of WiLAN. "This strategy
provides an ideal opportunity for us to diversify and inject new
growth into the business, while addressing the "lumpy" financial
performance that has come to be associated with stand-alone patent
licensing businesses. Because the environment for patent
licensing companies has changed so much over the past decade, we
have concluded that patent licensing as a stand-alone business will
not meet our long-term objectives as a public company. However, the
knowledge and experience we have gained as a leader in the patent
licensing industry are directly applicable to identifying promising
technology businesses with a focus on the IIoT segment. We
will be looking for opportunities to expand our Board and senior
management team with additional M&A and IIoT experience.
"WiLAN has a very strong established brand in the intellectual
property licensing industry, which we will continue to build-on.
Following the change of its name to Quarterhill, WiLAN will
continue the intellectual property licensing business as a
subsidiary of Quarterhill. For the year ended
December 31, 2016, WiLAN generated revenues of $92.9 million, earnings before interest, taxes,
depreciation and amortization of $53.7
million and cash from operations of $36.8 million. The future focus will be on
generating positive cash flow and consistent performance from the
patent business.
"In my new role as Executive Chairman I will oversee the
strategic direction and chair the Board of Quarterhill. I
will also oversee operations in the patent licensing part of the
business on a temporary basis while we seek a permanent leader of
this important part of our business. It is expected that even
after we appoint a permanent leader of the patent licensing
business, I will continue to assist on a part-time basis with
patent licensing operations. This fits with my own personal plans
and allows an evolution in the leadership of the Company."
WiLAN has a strong balance sheet to support this growth strategy
and has no intention of changing its dividend policy. At
December 31, 2016, the Company had
$107.7 million (CDN $143.1 million) in cash and cash equivalents and
no debt.
Conference Call Information: April 17,
2017 at 4:30 PM ET
WiLAN will conduct a conference call to discuss this announcement
today at 4:30 PM Eastern Time. WiLAN
Executive Chairman, James Skippen
and Interim CEO, Shaun McEwan will
host the call.
Access Information
A live audio webcast will be available at
http://bit.ly/2p2ScSK
- To access the call from Canada
and U.S., dial 1.888.231.8191 (Toll Free)
- To access the call from other locations, dial 1.647.427.7450
(International)
Replay Information
A webcast of the call will be
archived for 90 days and is available at http://bit.ly/2p2ScSK
A replay will also be accessible by telephone until 11:59 PM ET on April 24,
2017.
Replay Number (Toll Free): 1.855.859.2056
Replay Number (International): 1.416.849.0833
Replay Password: 7567329
About WiLAN
WiLAN is one of the most successful patent licensing companies
in the world and helps companies unlock the value of intellectual
property by managing and licensing their patent portfolios.
The Company operates in a variety of markets including automotive,
digital television, Internet, medical, semiconductor and wireless
communication technologies. Founded in 1992, WiLAN is listed
on the TSX and NASDAQ. For more information:
www.wilan.com.
Forward-looking Information
This news release contains forward-looking statements and
forward-looking information within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 and other United States and Canadian securities
laws. Forward-looking statements and forward-looking
information are based on estimates and assumptions made by WiLAN in
light of its experience and its perception of historical trends,
current conditions, expected future developments and the expected
effects of new business strategies, as well as other factors that
WiLAN believes are appropriate in the circumstances. Many factors
could cause WiLAN's actual performance or achievements to differ
materially from those expressed or implied by the forward-looking
statements or forward-looking information. Such factors include,
without limitation, the risks described in WiLAN's February 10, 2017 annual information form for the
year ended December 31, 2016 (the
"AIF"). Copies of the AIF may be obtained at www.sedar.com or
www.sec.gov. WiLAN recommends that readers review and consider all
of these risk factors and notes that readers should not place undue
reliance on any of WiLAN's forward-looking statements. WiLAN has no
intention, and undertakes no obligation, to update or revise any
forward-looking statements or forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
All trademarks and brands mentioned in this release are the
property of their respective owners.
SOURCE Wi-LAN Inc.