Pivot Technology Solutions (TSX:PTG)
Historical Stock Chart
2 Months : From Oct 2019 to Dec 2019
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