Boston, MA 07/02/2014 (wallstreetpr) – iPass Inc. (NASDAQ:IPAS) has completed an important transaction that allows it to focus exclusively on the business that has become its long-term dream in recent times.
The company announced completing the sale of its Unity business unit so that it can gain singular focus on providing global Wi-Fi solutions. The company is a global leader in the provision of Wi-Fi roaming.
Deal with Tolt
iPass Inc. (NASDAQ:IPAS) unloaded the Unity business to Tolt Solutions for $28.2 million. According to President and CEO Evan Kaplan, the company expects its Unity customers to continue experiencing the quality services they have come to associate with the company now that the unit moves to Tolt.
The company said that more details about the transaction will be available when the company presents at the 2Q2014 conference call in August.
In addition to gaining exclusive focus on Wi-Fi business, iPass also announced that the transaction will strengthen its balance sheet and support its ambitious growth strategy.
Expanding position in Wi-Fi
iPass Inc. (NASDAQ:IPAS) saw more than 77 percent growth in its Wi-Fi revenue in 2013, and the company expects more this year, especially following the divestiture that allows it more room to funnel its resources in tapping opportunities in the expanding global Wi-Fi market.
The demand for Wi-Fi is already high, and more growth is expected in the industry because of the increasing adoption of mobile devices such as smartphones and tablets. The other factor that is leading to robust growth in Wi-Fi is the big demand for data by the mobile devices as the technology becomes central to personal and business lives.
iPass Inc. (NASDAQ:IPAS) provides Wi-Fi connectively that allows people to connective easily and cheaply. The company’s users have grown significantly from several thousands in the past few years to more than 1.6 million, according to the latest report.
Wi-Fi is increasingly getting adopted in airports, airplanes, hotels, trains and public venues around the world, which provides an interesting business opportunity for established providers such as iPass Inc. (NASDAQ:IPAS).
