TORONTO, Oct. 15, 2019 /CNW/ - Pivot Technology Solutions,
Inc. (TSX: PTG), ("Pivot", or the "Company"), a full-service
information technology provider, is pleased to announce that it has
entered into a definitive agreement to sell its Smart EdgeTM
software business to Intel Corporation (NASDAQ: INTC),
("Intel") for total consideration of $27
million USD, payable in cash. The transaction is scheduled
to close during the fourth quarter of 2019 and is subject to
customary closing conditions.
Pivot's dedicated Smart Edge employees, including Smart Edge CEO
Bob Pike, will join Intel's Network
and Custom Logic Group (NCLG) when the transaction closes.
"This transaction enhances Intel's ability to address the 5G
network transformation with a leading position in edge computing,"
said Dan Rodriguez, vice president
and general manager of the Network Compute Division in Intel's Data
Center Group. "We plan to take full advantage of our combined
technologies and teams to accelerate the development of the edge
computing market while creating a compelling solution for
customers."
In connection with the sale of Smart Edge, Pivot and Intel have
entered into a three-year preferred channel partner agreement which
designates Pivot as a non-exclusive preferred system integrator and
channel partner for Smart Edge based solutions. Under this
agreement, Pivot will market Smart Edge solutions and provide
customers edge services including: deployment, system integration,
monitoring and support services.
"It's been exciting to develop and launch this cutting-edge
platform and to witness the enthusiastic response from customers
and partners," said Mr. Kevin Shank,
CEO. "Pivot remains focused on the vast opportunities at the edge,
and with our Intel partnership, we maintain our goal of becoming
the #1 edge services provider in North
America."
"Intel is the right company and brand to advance and scale Smart
Edge's software solution. Our partnership with Intel will leverage
Pivot's core strengths as a technology integrator and service
provider with Intel's advanced technology solutions to drive the
adoption of the Smart Edge platform," added Mr. Shank. We look
forward to collaborating with Intel to develop and take to market
many new edge computing use cases."
As a result of the sale, Intel will acquire all of the assets of
Smart-Edge.com, an indirect subsidiary of the Company, related to
the Smart Edge Business, and will assume certain specified
liabilities.
For more information, please visit the Intel Newsroom.
ABOUT PIVOT TECHNOLOGY SOLUTIONS
Pivot is an
industry-leading information technology services and solutions
provider to many of the world's most successful companies,
including members of the Fortune 1000, as well as governments and
educational institutions. By leveraging its extensive OEM
partnerships and its own fulfillment, professional, deployment,
workforce and managed services, Pivot supports the IT
infrastructure needs of its clients. For more information, visit
www.pivotts.com.
FORWARD LOOKING STATEMENTS
This news release
contains statements that, to the extent they are not recitations of
historical fact, may constitute "forward-looking statements" within
the meaning of applicable Canadian securities laws. Forward-looking
statements include statements regarding the scheduled closing date
of the sale of the Smart EdgeTM software
business (the "Sale"), and the entering into a channel partner
agreement. Pivot uses words such as "may", "would", "could",
"will", "likely", "expect", "believe", "intend", "anticipate" and
similar expressions to identify forward-looking statements. Any
such forward-looking statements are based on assumptions and
analyses made by Pivot in light of its experience, including the
satisfaction or waiver of the conditions to the completion of the
Sale by [date], the ability of the Company to successfully market
edge services to its clients, as well as other factors Pivot
believes are appropriate under the relevant circumstances. However,
whether actual results and developments will conform to Pivot's
expectations and predictions is subject to any number of risks,
assumptions and uncertainties. Many factors could cause Pivot's
actual results to differ materially from those expressed or implied
by the forward-looking statements contained in this news release.
These factors include, without limitation: the failure of the
Company to satisfy all conditions to closing of the Sale, and the
possibility that Pivot will be unable to capitalize on edge service
opportunities in the manner and timeframe anticipated, and the
risks described in the Company's Annual Information Form for the
year ended December 31, 2018 under
the heading "Risk Factors" available at sedar.com. The
"forward-looking statements" contained herein speak only as of the
date of this news release and, unless required by applicable law,
the Company undertakes no obligation to publicly update or revise
such information, whether as a result of new information, future
events or otherwise.
Intel and the Intel logo are trademarks of Intel Corporation
in the United States and other
countries.
SOURCE Pivot Technology Solutions, Inc